Difference between void and voidable contract
A void contract is valid initially but ceases to be valid due to some subsequent impossibility or illegality of any act which is to be performed in future. On the other hand a voidable contract remains valid unless the party whose consent was not independent decides to rescind the contract.
Hello Uma Difference between void and voidable contract I am sharing a Image to understand Difference between void and voidable contract. This is helpful to you Please Read Void - An agreement is said to be void because of mistake, lack of consideration, want of capacity etc. A list of void agreements is given below: 1. Lack of capacity. 2. Mutual mistake of fact. 3. Unlawful consideration or object. 4. Consideration or object partly unlawful. 5. Agreements without consideration. 6. Agreements in restraint of trade. 7. Agreements in restraint of legal proceedings. 8. Uncertain Agreement. 9. Agreements by way of wager. 10. Impossible acts. 11. Agreements contingent on impossible event. 12. Reciprocal promises where there are void promises. 13. Agreement is restraint of trade Example 1: Contract with an idiot is a void contract because there is a lack of capacity. Example 2: Smuggling contract is a void contract. Voidable contract- When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused. A party to contract, whose consent was caused by fraud or mispresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put on the position in which he would have been if the representations made had been true. Exception : If such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, neverthless, is not voidable, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence.
Hie Uma, **The major differences between void contract and voidable contract are as under:** - A contract which lacks enforceability is Void Contract. A contract which lacks the free will of one of the parties to contract is known as Voidable Contract. Void Contract is defined in section 2 (j) while Voidable Contract is defined in Section 2 (i) of the Indian Contract Act, 1872. - A void contract was valid at the time when it is created, but later on it becomes invalid. Conversely, voidable contract is valid until the aggrieved party, does not revokes it within stipulated time. - When it is impossible, for an act to be performed by the parties it becomes void, as it ceases its enforceability. When the consent of the parties to the contract is not free, the contract becomes voidable at the option of the party whose consent is not free. - In void contract, no party can claim any damages for the non-performance of the contract. On the other hand, the aggrieved party can claim damages for any loss sustained.
**DIFFERENCE BETWEEN VOID AND VOIDABLE CONTRACT** Any contract which is not enforceable by law is void. A void contract can be valid in the beginning before it becomes void. An agreement which is enforceable by law at the option of only one party not at fault, but not at the option of other,it is voidable contract. In voidable contract the aggreived party has a right to rescind the contract and claim damages or to continue the contract as a valid contract. Thanks
Differences between Void and Voidable contract :- The type of contract that cannot be enforced by law is a void contract. The contract which can be enforced or rescinded at the option of one party but not at the option of other or others is a voidable contract. A void contract is valid initially but ceases to be valid due to some subsequent impossibility or illegality of any act which is to be performed in future. On the other hand a voidable contract remains valid unless the party whose consent was not independent decides to rescind the contract. In a void contract non of the party gets any right against the other. Whereas in a voidable contract the aggrieved party (party whose consent is not free) gain the right to claim damages from the defaulting party.