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"void" and "voidable" contract

"void" and "voidable" contract

by Muhaiminul Islam Mridul -
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In contract law, "void" and "voidable" agreements are two distinct concepts that describe the legal status of contracts:

1. Void Agreement:

   - A void agreement is one that is not legally valid from the outset. It is as if the contract never existed, and it lacks legal effect.

   - These agreements are typically unenforceable because they violate the law or public policy. Examples include contracts for illegal activities or contracts with minors in some jurisdictions.

   - Since they are fundamentally flawed, neither party can enforce the terms of a void agreement, and any property or money exchanged under such an agreement may need to be returned.

2. Voidable Agreement:

   - A voidable agreement, on the other hand, is initially valid but has factors that allow one party to choose whether to affirm or void the contract.

   - These factors might include fraud, misrepresentation, duress, undue influence, or lack of capacity (e.g., one party was mentally incapacitated at the time of contract formation).

   - The party with the option to void the contract can choose to either affirm it or void it, depending on their circumstances and interests.

 - If the party with the voidable option decides to void the contract, it becomes void and unenforceable. However, if they decide to affirm it, the contract remains valid and enforceable.