Void and Voidable Contract
Void and Voidable Contract
Explanation
The word void means “not binding in law” A contract which cannot be enforced by law even
no party can take legal action against one another.
1. Enforceability by law
A void contract is not enforceable by law because it not fulfill the requirements of a valid
contract
2. Compensation
In void contract no compensation can be paid by any party because it not fulfill the
requirements of a valid contract
3. Nature of contract
According to its nature because it is against the public policy that’s why it is a void contract
because
4. No legal rights
A void contract does not create any legal rights because it not fulfill the requirements of a
valid contract
2. Compensation
In voidable contract compensation will be paid by one party to another party if any party
cancels the contract
3. Nature of contract
A voidable contract is a valid contract until it is avoided by the party. Once it is avoided it
becomes void
4. Legal Right
It provides legal rights in hands of both parties who can claim that their consent has been
obtained by undue influence etc.
2. As to compensation
In void contract compensation cannot be paid
Compensation may be paid in voidable contract
3. Legal effect
A void contract has no legal effect
A voidable contract has legal effect until it is avoided
4. As to objection
In void contract no party can claim his objection against other party
In voidable contract each party can claim his objection against other party
5. Time factor
A void contract is invalid from the moment it is created
A voidable contract is valid till the time it is avoided
10) Conclusion
Contract is legally binding agreement between two or more parties by which rights can be
acquired by parties. A void contract is not enforceable by the law due to failure of
fulfillments required by law, makes the such contract void. A voidable contract is
enforceable by the law but only the option of the one or more parties