A void agreement and a voidable agreement are terms used in contract law that refer to contracts that have legal implications but are not enforceable for different reasons.
A void agreement is one that is deemed invalid from the very beginning, and it is as if the agreement never existed. This type of agreement is illegal and cannot be enforced by either party. Examples of void agreements include agreements that involve fraud, misrepresentation, or illegality.
For instance, if two parties entered into an agreement that is illegal, such as selling drugs, the agreement is void, and neither party can use it in a court of law. The agreement is deemed to have never existed, and any obligations or liabilities arising from it do not hold.
On the other hand, a voidable agreement is considered valid until it is challenged or declared void by one party. This type of agreement can be enforced until one of the parties involved decides to challenge its validity.
Examples of voidable agreements include agreements that have been made under duress, coercion, undue influence, or misrepresentation. In such cases, the contract is treated as valid until the aggrieved party decides to terminate it.
For instance, if a person signs an agreement under duress or coercion, the agreement is considered voidable since it was signed under duress. The aggrieved party can choose to terminate the agreement, and it will be deemed null and void.
In summary, a void agreement is one that is illegal or against public policy, and it is treated as if it had never existed, while a voidable agreement is considered valid but can be terminated by one party.
It is essential to understand the difference between these two types of contracts and seek legal advice before entering into any agreement to avoid being trapped in an unenforceable contract or committing an illegal act.