In contract law, "void" and "voidable" agreements represent two different categories of contracts that have distinct legal consequences:

1. Void Agreement:

   A void agreement is a contract that is essentially without legal effect from the beginning. It is invalid and unenforceable by law, and it cannot create any legal rights or obligations for the parties involved. Several situations can render an agreement void:

   • Illegal Purpose: If the subject matter or the purpose of the contract is illegal or against public policy, the contract is void. For example, a contract to engage in illegal activities or a contract to commit fraud is void.

   • Mistake: A contract may be void if both parties are mistaken about a fundamental aspect of the contract, rendering the agreement impossible or impractical.

   • Capacity: If one or both of the parties lack the legal capacity to contract (e.g., they are minors or mentally incapacitated), the contract may be void.

   • Impossibility: If it becomes impossible to perform the contract due to unforeseen events or changes in the law, the contract may be void.

   • Contrary to Public Policy: Contracts that go against public policy, such as those that encourage illegal discrimination or promote anti-competitive behavior, may be considered void.

2. Voidable Agreement:

   A voidable agreement is a contract that is initially valid and enforceable but gives one of the parties the option to void or enforce the contract at their discretion. The party with the power to void the contract is usually the one who was subject to some form of wrongdoing, such as fraud, duress, misrepresentation, or lack of capacity when entering into the contract. Key characteristics of voidable agreements include:

   • Option to Void: The party with the option to void the contract can choose to either uphold the contract or declare it void. This choice is usually based on their assessment of the circumstances and whether they wish to proceed with the contract.

   • Time Limit: The right to void the contract is often subject to a time limit, and once that period expires, the contract becomes fully enforceable.

   Common scenarios where an agreement may be voidable include cases of fraud, where one party is deceived into the contract, or duress, where one party is forced into the contract against their will.

In summary, a void agreement is one that is inherently invalid and unenforceable from the outset due to its nature or the circumstances surrounding it. In contrast, a voidable agreement is initially valid but provides one party with the option to void the contract under specific conditions. The legal consequences of void and voidable agreements are different, with void agreements having no legal effect, while voidable agreements can be enforced if not voided within the prescribed timeframe.