A Tale of Void and Voidable Contracts
A void contract is a contract that is not legally binding and has no legal effect. This means that neither party can enforce the contract or seek legal remedies for its breach. A void contract is considered invalid from the very beginning and cannot be enforced by either party. Some common examples of void contracts include contracts for illegal activities, contracts that lack consideration (something of value exchanged by both parties), and contracts that are against public policy.
On the other hand, a voidable contract is a contract that is valid and legally binding, but one party has the option to cancel or void the contract. This means that the contract can be enforced unless and until one of the parties decides to void it. A voidable contract is considered valid until it is avoided by one of the parties. Some common examples of voidable contracts include contracts entered into by minors, contracts entered into by individuals who were under duress or undue influence, and contracts that contain misrepresentations or fraud.
Following are some examples of void and voidable contracts:
- A contract for the sale of narcotic drugs is void because it is illegal.
- A contract for the sale of a person is void because it is against public policy.
- A contract entered by a minor is voidable because minors do not have the legal capacity to enter into contracts.
- A contract entered by an individual who was under duress is voidable because the individual was not acting of their own free will.
- A contract that contains misrepresentations or fraud is voidable because one party was misled.
- A contract that lacks consideration (something of value exchanged by both parties) is void because it does not meet the basic requirement for a valid contract. Although exception to this rule is given in Indian Contract Act.
- A contract for the sale of a car that was not in working condition at the time of sale is voidable because the seller committed fraud by misrepresenting the condition of the car.
- A contract for the sale of a service that was not performed as promised is voidable because the seller did not fulfil their obligations under the contract.
- A contract for the sale of a product that was not delivered as promised is voidable because the seller did not fulfil their obligations under the contract.
