please tell me the correct answer if u know it!!
A void agreement is one in which there is found to be no agreement; such as Farmer Brown selling his cow to Farmer Jones for $50.00, and Farmer Jones thought Farmer Brown was selling his pig for $50.00. Since there was no meeting of the minds, the contract is void (mutual mistake).
A voidable agreement is one in which one or both parties have the option to void the contract, and may elect to either continue performance of the contract, or void the contract.
For instance, someone under 18 years old does not have the required capacity to enter into a contract. However, if the under 18 year old does enter into a contract with another, under the law, the youngster has the option of going through with the contract, or voiding the contract.
A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. For example, depending upon jurisdiction, a minor has the right to repudiate certain contracts. Any contract with a minor is thus a voidable contract. If a minor were to enter into a contract with an adult, the adult would be bound by the contract, whereas the minor could choose to avoid performing the contract. Therefore, when entering into contracts with a minor, people often require the cosignature of an adult, preferably a parent or legal guardian A void contract, also known as a void agreement, is not actually a contract. A void contract cannot be enforced by law. Void contracts are different from voidable contracts, which are contracts that may be (but not necessarily will be) nullified. An agreement to carry out an illegal act is an example of a void contract or void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract. A void contract is void ab initio, i e from the beginning while a voidable contract can be voidable by one or all of the parties.
Something that is void is considered void “ab initio.” That means – it was void from the beginning — it was NEVER valid.
Something that is voidable CAN be made invalid — but it isn’t, until actions are taken.
An example of something that is void is:
A 25 year old marries a 14 year old without parental permission. The marriage is void.
An example of something that is voidable is: A 15 year old calls the flower shop and opens an account without using a credit card number. He sends flowers to the girl he likes. As a result, there’s a bill. . . but in order for there to be a bill, there had to be a service, and agreement to pay — which means there was a contract. Contracts with minors CAN be valid — BUT, are voidable at the discretion of the minor (or, more appropriately, the parents).
That is a very good question. Now are your ready for the answers. A contract or a document that is void means that everything on it stays nothing can be changed for a said amount of time like when a major corporation sends your a check and you have up to 180 days to cash it, but nothing on that check changes at all within those days. Just like a document that is a contract for a cleaning company for six months with set items to do nothing more and nothing less. If any part of this document of tender changes it is then voided and not any good to the presented and the maker.
Now for the voidable agreement part, which is almost the opposite but with a twist. This means that at any time durning the course of this agreement it can become voidable, which does not have to be honored by the maker only. It is almost like a loop hole with the contract that helps most car lot dealers, home owners that rent there property, and things like that.
In India, both these terms have been defined in the Indian Contract Act Sections 2(g) and 2(i) respectively.
Simply understood, an agreement which is not enforceable by law is void and an agreement which is enforeceable at the option of one of the parties to it is voidable.
An agreement is void in law i.e., ineffective to enforce. Voidable agreement cannot be enforced if the other person has incapacity to enter into agreement in the eyes of law.
One that is void never was legal or valid to begin with. A voidable agreement has some provision in it that allows one party or the other to cancel it.
A ‘void” agreement is “NO agreement” in the eyes of the law and hence unenfoceable in a court.
A “voidable” one is such that in securing the other’s consent
some “undue influence”, mistake or fraud has been utilized.
The affected party could sue for its due discharge or give it up.
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what is the difference between a void and a voidable agreement??
please tell me the correct answer if u know it!!
A contract is a documentation of an agreement between two private parties. This document creates mutual legal obligations, and can be either oral or written. However, oral contracts are more challenging to enforce and should be avoided whenever possible. Some jurisdictions do not recognize oral contracts as legally enforceable at all.
All valid contracts must include the following elements in order to be legally enforceable:
- An offer, such as one party paying another $1,000 for 1,000 units;
- An acceptance of the offer presented, such as one person accepting $1,000 for 1,000 units;
- A promise to perform;
- A valuable consideration;
- A time or an event of when the performance must be made, such as 1,000 units exactly two weeks from signing the contract;
- Terms and conditions for the performance; and
- Performance, or, the 1,000 units are delivered and the person is paid $1,000.
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:
- Marriage contracts;
- Contracts not to be performed within one year;
- Interest in land contracts;
- Paying decedent’s debt guarantees; and
- The sale of goods contracts over a specific amount, generally over $500.
What Is the Difference Between Void and Voidable? When Is a Contract Considered Void or Voidable?
The terms “void” and “voidable” are often confused for each other, or used interchangeably. 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.
Such contracts would be considered “void on its face.” What this means is that the contract is voided as written, and cannot be changed or amended. 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:
- Contracts involving an illegal subject matter, such as drug dealing, illegal gambling, or committing a crime;
- Contracts which are entered into by someone not mentally competent, such as those with mental illness, or minors;
- Contracts that require an impossible performance, or the performance is dependent on an impossible event happening;
- Contracts that are against public policy, such as when they are too unfair; and
- Contracts that restrain certain activities, such as the right to choose who to marry, restraining legal proceedings, and the right to work to earn a living.
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:
- The contract was entered into when one party was a minor, as the law often treats minors as though they do not have the mental capacity to enter into a contract;
- One party was forced or tricked into entering the contract; and
- One party was incapacitated in some way, such as drunk, insane, or delusional, when entering into the contract.
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.
What If I Need to Void a 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.
If you find yourself needing to have a contract voided, you should refer to your copy of the contract, as well as any other important documents from the contract formation process. Additionally, you should keep records of receipts, bills, and other documents proving any losses that you have incurred as a direct result of being involved with the contract.
To simplify, the process of having a contract voided generally follows these steps:
- The contract is reviewed for terms or factors that may cause it to be invalid;
- Determination of a legal reason as to why the contract should be void, such as duress at the time of signing;
- Collection of documents and information supporting that reason; and
- Determining whether an entirely new contract is needed, or portions of the contract should be rewritten. Alternatively, the contract may be abandoned altogether.
Each state maintains different laws regarding contracts, business matters, and commerce regulation. This is because each state has different commercial needs.
Additionally, death does not void all contracts. The death of a party to the contract does void certain contracts, but not all. Some examples of contracts that may be valid after the death of a party include:
- Conditions of a Decedent’s Will: If a donation to be paid over time is outlined in a will, this creates a contract. In this contract, the estate must continue making the donations, even after the individual’s death; and
- Joint Contract: The most common example of this would be where two individuals, such as a married couple, have a mortgage on a home. When one spouse dies, the living spouse is obligated to continue making mortgage payments.
Do I Need a Lawyer for Assistance With Void or Voidable Contracts?
If you are involved in a contract dispute, and need to know if the contract is void or voidable, you should consult with a local contract lawyer. An experienced and local contract attorney will be best suited to understanding your state’s laws regarding the matter, and how that may affect your case moving forward.
Alternatively, you may decide to consult with a contract attorney prior to entering into a contract. An attorney can review the terms of the contract to ensure they are in your best interests, and advise you against signing anything that could be unenforceable later on.