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Difference Between Void Contract and Voidable Contract

Void Vs Voidable ContractWhen an agreement is enforceable at law, it becomes a contract. Based on validity, there are several types of contract, i.e. valid contract, void contract, illegal contract, etc. Void contract and voiadable contract are quite commonly miscontrued, but they are different. Void Contract, implies a contract which lacks enforceability by law, whereas Voidable Contract, alludes to a contract wherein one party has the right to enforce or rescind the contract, i.e. the party has to right to put the contract to end.

Before entering into a contract, the parties must be aware of the types of contract, which may be helpful in understanding their rights and duties. So, take a read of this article, in which we have provided the fundamental differences between void contract and voidable contract.

Content: Void Contract Vs Voidable Contract

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Video
  5. Examples
  6. Conclusion

Comparison Chart

Basis for ComparisonVoid ContractVoidable Contract
MeaningThe type of contract which cannot be enforceable is known as void contract.The contract in which one of the two parties has the option to enforce or rescind it, is known as voidable contract.
Defined inSection 2 (j) of the Indian Contract Act, 1872.Section 2 (i) of the Indian Contract Act, 1872.
NatureThe contract is valid, but subsequently becomes invalid due to some reasons.The contract is valid, until the party whose consent is not free, does not revokes it.
ReasonsSubsequent illegality or impossibility of any act which is to be performed in the future.If the consent of the parties is not independent.
Rights to partyNoYes, but only to the aggrieved party.
Suit for damagesNot given by any party to another party for the non-performance, but any benefit received by any party must be restored back.Damages can be claimed by the aggrieved party.

Definition of Void Contract

A void contract is a contract which is not enforceable in the court of law. At the time of formation of the contract, the contract is valid as it fulfills all the necessary conditions required to constitute a valid contract, i.e. free consent, capacity, consideration, a lawful object, etc. But due to a subsequent change in any law or impossibility of an act, which are beyond the imagination and control of the parties to the contract, the contract cannot be performed, and hence, it becomes void. Further, no party cannot sue the other party for the non-performance of the contract.

The contract becomes void due to the change in any law or any government policy for the time being in force in India. Along with that, the contracts which are opposed to public policy also ceases its enforceability. Contracts with incompetent persons are also declared void like minor, persons of unsound mind, alien enemy or convict, etc.

Definition of Voidable Contract

Voidable Contract is the contract which can be enforceable only at the option of one of the two parties to the contract. In this type of contract, one party is legally authorized to make a decision to perform or not to perform his part. The aggrieved party is independent to choose the action. The right may arise because the consent of the concerned party is influenced by coercion, undue influence, fraud or misrepresentation, etc.

The contract becomes valid until the aggrieved party does not cancel it. Moreover, the party aggrieved party has the right to claim damages from the other party.

Key Differences Between Void Contract and Voidable Contract

The major differences between void contract and voidable contract are as under:

  1. A contract which lacks enforceability is Void Contract. A contract which lacks the free will of one of the parties to the contract is known as Voidable  Contract.
  2. Void Contract is defined in section 2 (j) while Voidable Contract is defined in Section 2 (i) of the Indian Contract Act, 1872.
  3. A void contract was valid at the time when it is created, but later on, it becomes invalid. Conversely, the voidable contract is valid until the aggrieved party does not revoke it within stipulated time.
  4. 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.
  5. 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.

Video: Void Contract Vs Voidable Contract

Examples

  • A promises B to sell his horse after one month to B for Rs. 50,000. Before the completion of one month, the horse died. Now, the contract becomes void as the contract cannot be performed, i.e. the object on which the parties agreed is no more, so there is an impossibility of performance of the contract. This type of Contract is known as Void Contract.
  • X says to Y, that he should sell his new bungalow to him at a nominal price otherwise, he will damage his property and Y enters into a contract due to fear. In this situation, the contract voidable as the consent of Y is not free, so he has the right to avoid the performance of his part. As well as he can claim for any damages caused to him.

Conclusion

There are many contracts which are valid, but sometimes due to certain circumstances, they cease to be enforceable which makes them a void contract because it is impossible that the contract is to be further executed. Similarly, many people unlawfully induce or persuade the will of another person to enter into a contract, which becomes voidable at the option of the party whose consent was so induced.

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Comments

  1. donatus says

    July 31, 2015 at 2:24 pm

    It was helpful thank u

    Reply
  2. ankit bisht says

    September 26, 2015 at 7:22 am

    Surbhi, you doing a great job by helping us, All your post are helpful…..thanks Surbhi…..

    Reply
  3. Gretta says

    October 7, 2015 at 8:36 am

    Perfect, it is really helpful

    Reply
  4. Krupali Shah says

    December 7, 2015 at 7:34 pm

    Helpful informations… Thanks. .

    Reply
    • SHEHNAWAZ says

      February 7, 2021 at 4:51 pm

      You have described it in a good manner…. it was so helpful for my studies..

      Reply
  5. Amjad ali says

    February 13, 2016 at 3:47 am

    thank you for examples.

    Reply
  6. Thomas says

    May 23, 2016 at 12:00 am

    Great Work Dear.. pls continue

    Reply
  7. Harshika says

    August 24, 2016 at 10:41 pm

    it is very helpful

    Reply
  8. Dipi says

    August 29, 2016 at 12:42 am

    Thanks a lot. It’s really helpful. So happy I’m.. ?☺

    Reply
  9. Farah says

    September 7, 2016 at 9:11 pm

    Thanks it is really helpful ?

    Reply
  10. nuusiku van persie says

    October 19, 2016 at 3:37 pm

    thank you very much , this meant a lot in my studies !

    Reply
  11. Divya pathak says

    November 1, 2016 at 10:33 pm

    It is really helpful for me.?

    Reply
  12. Abhishek Yadav says

    November 9, 2016 at 6:58 pm

    Thanks a lot. This helped me to understand the difference. Truly speaking really helpful.

    Reply
    • Surbhi S says

      November 10, 2016 at 12:34 pm

      Thanks a ton for sharing your views with us 🙂

      Reply
  13. Zubair Ali says

    May 20, 2017 at 12:01 am

    U have Beautifully explained Each & Every thing With Respect To Void & Voidable Contract… 🙂

    Reply
  14. Kalyani Nawale says

    October 7, 2017 at 12:02 am

    Thanks for this… it is really very helpful.. ☺

    Reply
  15. Shajib Saha says

    December 9, 2017 at 5:02 pm

    Really clear to me regarding the distinction between void and voidable contract. I guess that the writer is a man of deep knowledge concerning the Contact Act. The better explanation including examples are unquestionable on the subject matters….

    Thank U very much.

    Reply
  16. Prashant says

    February 7, 2018 at 5:57 am

    Its very helpful example of the void and voidble contract

    Reply
  17. Shraddha Korekar says

    February 20, 2018 at 5:21 pm

    Thanks …… it was really very helpful u r doing a great job

    Reply
  18. Surbhi S says

    February 21, 2018 at 12:28 pm

    Glad to know that it helped you. Thank you all for appreciating it. Keep reading and visiting the site, for fresh updates 🙂

    Reply
    • Siddharth Sawhney says

      February 6, 2023 at 8:14 am

      You’ve done some tremendous work over here. I’m thankful from the bottom of my heart.

      Reply
  19. Isaac Garry says

    February 9, 2021 at 8:03 am

    This is remarkably helpful, thank you for this 🙏🙏👌👌

    Reply
  20. Hemang says

    May 18, 2022 at 8:55 pm

    Really Helpful Content

    Reply

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