Which of the following Is True about Void and Voidable Contracts

When it comes to contracts, there are many terms that can be confusing and overwhelming, including the concepts of void and voidable contracts. Both of these terms are used to describe contracts that may not be legally enforceable, but there are some key differences between the two.

First, it`s important to understand what a contract is. A contract is a legally binding agreement between two or more parties, in which each party agrees to perform certain obligations in exchange for something else, such as money or goods.

A void contract, then, is one that is invalid from the very beginning. This means that the contract was never legally enforceable in the first place, due to some defect or issue with the agreement itself. For example, a contract may be void if it is illegal, if it is based on fraud or misrepresentation, or if one of the parties lacked the capacity to enter into the agreement (such as a minor or someone who is mentally incapacitated).

On the other hand, a voidable contract is one that is initially valid, but may be voided or cancelled by one of the parties involved. This means that the contract was legally enforceable at the time it was signed, but there are certain circumstances that give one party the right to cancel the agreement. For example, a contract may be voidable if one party was coerced or threatened into signing it, or if one party was misled or deceived about the terms of the contract.

It`s important to note that just because a contract is void or voidable doesn`t mean it`s automatically unenforceable. In some cases, the court may still enforce the contract if it believes that doing so would be in the best interests of both parties.

In summary, the main difference between void and voidable contracts lies in when they become unenforceable. A void contract is invalid from the beginning, while a voidable contract may be cancelled by one of the parties involved due to certain circumstances. As with any legal issue, it`s always best to consult with a lawyer or legal expert if you have questions or concerns about a contract.