What are void and voidable contracts?

Void and voidable contracts are two types of deals that can affect the legal standing of an agreement. A void contract is not valid from the start, while a voidable contract is valid but can be rejected by one or more people under certain conditions.

Void contracts

A void contract is an agreement that has no legal effect from the beginning. It can't be enforced by either side. For example, a deal to sell illegal drugs is void because it involves illegal activities.

Reasons for void contracts:

• Illegal object: Deals that involve illegal activities are void. This includes agreements for illegal gambling or drug trafficking.
  
• Capacity issues: Deals where one or more people lack legal capacity are void. This includes agreements with minors or individuals who can't make sound decisions.

Voidable contracts

A voidable contract is an agreement that is valid but can be accepted or rejected by one or more people. The contract stays in effect until one side chooses to void it. For example, a contract signed under threat can be voided by the person who was threatened.

Grounds for voidability:

• Misrepresentation: Deals based on false information can be voidable. This includes situations where one side gives wrong facts or makes false claims.
  
• Threats and unfair influence: Deals where one side is forced or unfairly influenced can be voidable. This includes threats of harm or taking advantage of vulnerable individuals.

Differences between void and voidable contracts

• Legal status: Void contracts are not valid from the start and have no legal effect. Voidable contracts are valid until one side decides to void them.
  
• Enforceability: Void contracts have no legal standing and can't be enforced. Voidable contracts can be enforced unless one side chooses to void them.

Practical implications

Legal consequences:

People involved in void contracts may face legal issues, such as having to return benefits received under the contract. In voidable contracts, people may seek legal help if the contract is voided.

Avoiding issues:

To avoid problems with void and voidable contracts, it's important to carefully review the contract terms and talk to legal experts. This can help make sure the contract is valid and can be enforced.

To sum up, understanding the differences between void and voidable contracts is key for protecting your interests in legal deals. By knowing what makes these contracts different, you can better handle legal matters and avoid potential problems.