Difference between a void contract and a voidable contract


According to section 2(j), a void contract is a contract which ceases to be enforceable by law becomes void when it ceases to be enforceable’. It is valid when it is made. But binding on the parties it may subsequently become void. We may talk of such a contract as void agreements. It does not provide any legal remedy for the parties to the contract. It may void of into right from the beginning. In other words, it is not a contract at all.


According to section 2(i), a voidable contract is ‘an agreement which is enforceable by law at the option of one or more the parties but not at the option of the other or other or others’. A voidable contract on the other hand is voidable at the option of the aggrieved party and remains valid until rescinded by him. Contracts caused by coercion, undue influence, fraud, misrepresentation are voidable. But in case the contract is caused by mistake it is void. The aggrieved party in a voidable contract gets a right to rescind the contract. When such a party rescinds it, the contract becomes void. In case the aggrieved party does not rescind the contract within a reasonable time, the contract remains valid.

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