Voidable Contract Vs Void Agreement

In the world of legal terminology, the words «voidable contract» and «void agreement» are often used interchangeably. However, in reality, these two concepts have distinct meanings that are important for anyone entering into a contract to understand.

A void agreement refers to a contract that is not enforceable by law. This means that if a dispute arises over the terms of the agreement, a court would not be able to enforce the terms of the contract. Void agreements can arise in a number of situations, such as when the agreement is entered into under duress, fraud, misrepresentation, or mistake. In these cases, the agreement would be considered void from the outset.

On the other hand, a voidable contract is one that is valid and enforceable, but can be legally voided or cancelled by one or both parties. Voidable contracts can arise when one of the parties to the contract is a minor or lacks capacity to enter into the agreement. Additionally, a contract can be voidable if one of the parties was coerced or misled into agreeing to the terms of the contract.

It`s important to note that the party seeking to void a contract must exercise their right to do so within a certain time frame. If they fail to do so, the contract may become binding and enforceable.

So, what`s the difference?

The key difference between a void agreement and a voidable contract is that a void agreement cannot be enforced by law, while a voidable contract can be enforced until it is legally voided or cancelled. Void agreements are essentially invalid from the start, while voidable contracts are initially valid but can be cancelled based on specific circumstances.

In summary, understanding the difference between a voidable contract and a void agreement is crucial for anyone entering into a contract. Make sure to carefully review the terms of any agreement before signing, and seek legal advice if you have any concerns or questions.