Courts will not enforce certain contracts unless they are in writing. This is because certain contracts fall under the Statute of Frauds , meaning they must be in writing to be valid and binding. Examples of such contracts include:. Although these two types of contract seem similar, they are quite different.
A contract that is considered to be void cannot be enforced by either party. The contract has been rendered unenforceable. Under law, void contracts are treated as if they had never been formed. An example of when a contract will be considered void would be if the contract requires one party to perform an act that is impossible, or illegal. Generally speaking, the court will entirely cancel such contracts. No damages are available for breach of a void contract due to the fact, essentially, there was no contract to breach.
Alternatively, a voidable contract is a valid contract that can still be enforced. Generally speaking, only one party is bound to the contract terms contained within a voidable contract. The unbound party, then, is allowed to cancel the contract. This is what makes the contract void. To further clarify the difference between the two, a void contract can no longer be performed under the law, while a voidable contract can. However, the unbound party to the contract may choose to void it before the other party can perform.
Void contracts are unenforceable by law, and are invalid. Some examples of void contracts include:. Voidable contracts are valid agreements; however, one or both of the parties to the contract can void the contract, and at any time. Some examples of when you may be unable to enforce a voidable contract include:. In some cases, the court may allow parts of the contract to be rewritten.
Legal remedies will vary, depending on the circumstances of the contract. An example of a voidable contract would be a contract entered into by a minor, as previously mentioned. Some states have determined that an individual is considered to be a minor until the age of 18, while the age differs in other states.
The minor could decide to breach the contract, at any time, without facing any legal consequences for breach of contract. Generally speaking, whether a contract is void or voidable, the process is the same. It is necessary to file a request with the court in order to have the contract reviewed.
This will help the court determine whether the contract is void or simply voidable, and what other remedies could be available. An example of this would be how a damages award may be available for extra losses that were caused by a breach of contract , but only in specific circumstances. Examples of void contracts could include prostitution or gambling. If someone enters into a contract and is suffering from a serious illness or was mentally incompetent, it would be void because the party lacked legal capacity to enter into a contract.
If you need assistance with drafting a legally enforceable contract or need to know whether an existing one might be void or voidable, you need to speak with a Washington DC business law attorney as soon as possible. All rights reserved. This law firm website is managed by MileMark Media. Close Menu. Menu Call Email Visit Search. What Does Void Mean? This voidable contract can be enforced, aggrieved, independent and action-oriented.
Any step taken by default mandates the consent of all the parties involved to take a mutually decided decision. Actions, reactions, processes, and further proceedings as per void agreements hold validity in situations that can be payment, documentation or of products and items that are of value.
The meaning of voidable merely means that the inbound party with its power can cancel the agreement but with mutual consent. If the voidable agreement is not followed the outbound party has the right to seek a legal route. There are no rights or recursions if one of the party cuts off as Void agreement has no legal connotations as a consequence attached. Also, there are no obligations as and the contract is considered to be null from the very beginnings.
Avoidable contract, on the other hand, is a valid contract having validity as well. A voidable contract is also foreseen and enforced by the law. A voidable contract becomes nullified, only when it lacks the enforceability of the bonds or if one party wants to take a step back.
To take a step back is also called to rescind. A void agreement can for sure be validly law-driven however voidable contract calls out for both the inbound and outbound parties to be existential to explicitly avail legal concur. A void agreement was never valid from the very beginning while the validity plays a little differently for the voidable contract.
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