There is a big difference between void and voidable contracts. A void contract is one that is not legal in the first place, while a voidable contract is one that could be considered legal but may be canceled by one of the parties involved. Knowing the difference is important for both businesses and consumers alike.
What is Void?
Void, in legal terms, refers to the absence of any legal claim or title to land. Void also means that there are no rights attached to the land. The word “void” is most often used in contrast to “unenclosed land,” which island that is not part of a building or other structure. Void can also refer to a person who does not have any civil rights, such as the right to vote or the right to own property. In some jurisdictions, a void marriage is one that was never legally valid, and an annulment may be granted if the marriage can be proved to be void. Voidable contracts are those that can be canceled by either party if they so choose. Voidable contracts are usually differentiated from void contracts, which cannot be canceled by either party and are therefore unenforceable. Finally, an avoidable will is a will that can be set aside by the court if it finds that the person who made the will did not have the mental capacity to do so.
What is Voidable?
A contract is voidable when one of the parties to the contract has the legal right to cancel or rescind it. An avoidable contract is a legally binding agreement between two parties, but with an underlying defect that allows one of the parties to back out of the contract if they choose to do so. The most common type of voidable contract is a contract that is entered into by a minor. In most jurisdictions, minors may not enter into binding contracts, so any contract they do enter into is voidable at their option. Voidable contracts are also often used in situations where one party has been misled or deceived by the other party, or where there was some form of misrepresentation or mistake made in the formation of the contract.
Difference between Void and Voidable
Void and Voidable are two terms that are often used interchangeably, but there is actually a big difference between the two. Void means that something is null and void, or of no legal effect. This means that it is not legally binding and cannot be enforced. Voidable, on the other hand, means that something is capable of being annulled or canceled. However, a voidable contract can still be legally enforced until it is officially annulled by a court. So, while a void contract is completely unenforceable, a voidable contract can still be enforced unless it is specifically annulled. This distinction is important to keep in mind when entering into any type of legal agreement.
Conclusion
In order to understand the difference between a void and a voidable contract, it is important to first understand the definition of each. A void contract is one that is not legally binding because it does not meet the requirements for a valid contract. For example, if two people agree to sell a product but do not have the legal capacity to enter into a contract (i.e., they are minors), then their agreement would be considered void. An avoidable contract, on the other hand, is still legally binding but can be voided or canceled by one of the parties involved if they choose to do so.
