Void agreements and voidable contracts are two legal terms that often confuse people. Although both refer to the fact that a contract is not legally enforceable, there are significant differences between these two types of contracts.

Void Agreement

A void agreement is an agreement that is entirely unenforceable by law and, therefore, is considered invalid from the outset. The agreement is not legally binding, and it cannot be enforced by either party under any circumstances. In other words, the agreement has no legal effect, and it is as if the agreement never existed in the first place. A void agreement is not created due to any defect in the formation of the contract but because the subject matter is against the law, fraudulent, or against public policy.

For example, let`s say that John and Jane want to enter into a contract that involves the sale of illegal drugs. This agreement is considered void because it is against the law and, therefore, has no legal backing.

Voidable Contract

A voidable contract is a contract that is initially legally enforceable but can be made void at the option of one or both parties involved in the agreement. The existence of such a contract may arise from defects in the formation of the contract, where one party is forced to enter into the contract, or where one party lacks the legal capacity to make a contract.

For instance, let`s say that Tom, a minor, entered into a contract with XYZ corporation to buy a car. Since a minor is not legally capable of entering into a contract, he has the option to void the contract. If Tom chooses to void the contract, the contract becomes unenforceable, and neither party could enforce it.

Difference between Void Agreement and Voidable Contract

One of the significant differences between a void agreement and a voidable contract is that a void agreement is invalid right from the beginning, while a voidable contract becomes void at the will of one or both of the parties involved. Furthermore, in a void agreement, the contract cannot be ratified or amended to make it enforceable, while in a voidable contract, it can be ratified or affirmed to become legally binding.

In summary, a void agreement is entirely unenforceable by law, and it is considered invalid from the outset, while a voidable contract is initially legally enforceable, but it can be made void at the option of one or both parties involved in the agreement. Therefore, it is essential to understand the difference between these two terms to avoid confusion and to ensure that your legal rights are protected.