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Agreement

Agreement

by Arpa Singh -
Number of replies: 0

Question : difference between void and voidable agreement? 

Answer: The terms "void" and "voidable" refer to different statuses of agreements in contract law, indicating the legal consequences associated with each. Here's a brief distinction between void and voidable agreements:


1. **Void Agreement:**

   - A void agreement is one that is fundamentally unenforceable from the beginning. It lacks legal validity and cannot be enforced by either party. Such agreements are considered as if they never existed in the eyes of the law.

   - Reasons for voidness include illegality, impossibility, or being against public policy.

   - For example, an agreement to commit a crime or an agreement with impossible terms would be void.


2. **Voidable Agreement:**

   - A voidable agreement is initially valid and enforceable, but one of the parties has the option to void (cancel) it. The agreement remains in force until the party with the option to void decides to exercise that right.

   - Grounds for making an agreement voidable include fraud, undue influence, coercion, misrepresentation, or a party lacking capacity.

   - For instance, if a contract is entered into due to duress or a false representation, the affected party may choose to void the agreement.


In summary, the key difference lies in the enforceability and the circumstances under which an agreement can be set aside:


- A void agreement is inherently unenforceable and treated as if it never existed.

  

- A voidable agreement is initially enforceable, but one party has the option to void it based on specific legal grounds. If the right to void is not exercised within a reasonable time, the agreement becomes valid and enforceable.