When it comes to legal contracts and agreements, there are two important terms that need to be understood – voidable contract and void agreement. While both may seem similar, they have distinct differences that are important to recognize.
A void agreement is considered invalid right from the start. This means that the agreement cannot be enforced under any circumstance, regardless of whether it was made in good faith or bad faith. Void agreements are often made due to certain legal restrictions or unlawful considerations. For example, a contract that involves committing a crime or going against public policy will be considered void.
On the other hand, a voidable contract is considered to be valid but can be terminated at the option of one party. This means that while a contract might be initially enforceable, one party has the right to terminate it at a later stage. Voidable contracts are typically formed due to a lack of free consent or where one party has been coerced or misled by the other party. For example, if a contract is made under duress or misrepresentation, it can be considered voidable.
It’s important to note that void agreements are not just unenforceable but also illegal. This means that they cannot be used in a court of law to seek any kind of remedy. Voidable contracts, on the other hand, can be enforced until one party decides to terminate it.
In addition, void agreements can never be ratified or made valid. On the other hand, voidable contracts can be ratified if the party who had the option to terminate chooses not to do so and instead accepts the terms of the contract.
In conclusion, while voidable contracts and void agreements may seem similar, they have distinct differences that are important to understand. Void agreements are considered invalid right from the start, while voidable contracts are considered valid but can be terminated at the option of one party. It’s important to recognize these differences when entering into legal contracts and agreements to avoid any confusion or misunderstandings.