When two people enter into an agreement, they are both making a promise to each other. If one of those promises is not fulfilled, the other person may have grounds to sue for what is called a breach of contract. But what happens when there is no mutual agreement at all? This is where the concepts of void agreements and void contracts come in. In this blog post, we’ll explore the difference between these two legal terms. Stay tuned!
What is a Void Agreement?
Void agreements are contracts that are no longer binding. This can be because the agreement was never valid, to begin with, or because it has been rendered invalid by subsequent events.
- Void agreements are generally not enforceable in a court of law. This means that if one party tries to sue the other for breach of contract, they will not be successful. Void agreements can occur for a number of reasons.
- For example, if an agreement is made under duress, or if one of the parties is not legally competent to enter into a contract, then the agreement will be void.
- Void agreements are also commonly created when one of the parties to the contract dies before the agreement is finalized. In these cases, the contract will usually become void upon the death of the party.
What is a Void Contract?
A Void Contract is a contract that is not legally binding. This can be because it was entered into under duress, or because it contains illegal terms. Void contracts are usually null and void from the beginning, which means that they can be canceled at any time by either party. This can be helpful if one party needs to back out of the contract for any reason. Void contracts can also be used to cancel other types of contracts, such as leases or purchase agreements. Voiding a contract can have serious consequences, so it is important to seek legal advice before taking this step.
Difference between Void Agreement and Void Contract
A void agreement is an agreement that ceases to be enforceable by law. Void agreements are void and unenforceable from the beginning.
- Void contracts are contractual agreements that cannot be legally enforced by either party due to a defect in formation.
- A contract may be unenforceable if it was entered into under duress, fraud, or misrepresentation.
- A contract may also be unenforceable if one of the contracting parties is unable to perform their obligations under the contract.
- Void contracts are not void ab initio but only voidable, meaning that they may be declared void at the option of one of the contracting parties.
If a court declares a contract void, it is as if the contract never existed and the parties are released from their obligations under the contract. Voidable contracts, on the other hand, are still legally binding unless and until they are terminated by one of the contracting parties.
In short, an agreement is null and void when it’s invalid from the beginning due to some defect in formation. For example, if two parties sign a contract but one party signs with a fake name or do not have the legal authority to enter into contracts on behalf of the company they work for, then the contract would be considered null and void.
A contract, on the other hand, is only considered void if it’s breached by one or both parties. If either party fails to live up to their contractual obligations, then the court may declare the contract void. This can happen if, for instance, one party doesn’t deliver the goods that were promised or stops making payments as agreed upon.