Void contract definition: A void contract is a type of agreement that is null and invalid from its formation or becomes invalid at some point in the future.

A valid contract can also become void at some point in the future. For parties to form a valid contract, the contract must include essential elements such as acceptance and offer, competent contracting parties, lawful consideration, lawful object, and free consent. If any of the contract’s essential elements listed above become impossible later, the contract will be void. Furthermore, once a contract becomes void, it is no longer legally enforceable. Let’s go through an example to understand the term “void contract” in a better way.

Voidable contract definition: A voidable contract is a type of agreement that can be made void only by one of the parties that made the contract, and this contract is enforceable by law only by that one party.

In a voidable contract, one party is legally empowered to decide whether or not to perform his part. Furthermore, this contract is only valid until the dissatisfied party cancels it. A dissatisfied party may cancel the contract for various reasons, such as all facts not disclosed, misrepresentation or fraud, contractual error, breach of contract, etc. Let’s go through an example to understand the term “voidable contract” in a better way