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Difference between Voidable Agreement and Void

In the world of law and contracts, it’s important to understand the difference between void and voidable agreements. While they may sound similar, these terms have distinct meanings that can have serious implications for both parties involved. In this article, we will explore the differences between voidable agreements and void contracts, their implications, and how to avoid them.

What is a void agreement?

A void agreement, also known as a null contract, has no legal effect from the beginning. In other words, it is unenforceable by law. Such an agreement is illegal or prohibited by law and cannot be upheld by any court of law. For example, if two parties make an agreement to commit a crime, it will not be legally binding.

Under this type of agreement, neither party can enforce the terms. Neither party can sue the other for a breach of the contract. The agreement is simply unenforceable, and it is as if it never existed in the first place. Void agreements can be declared void by any court or authority, even if the parties have not challenged them.

What is a voidable agreement?

A voidable agreement, on the other hand, is a contract that is initially valid but can be voided by one party if certain conditions are met. One party has the right to enforce or terminate the agreement while the other party has some time to object. In other words, a voidable agreement means that the parties involved can decide whether or not to enforce the contract, depending on the situation.

For example, if a party enters into a contract after being threatened or coerced, that agreement may be voidable. In this scenario, the party that had been coerced could choose to void the agreement. Similarly, if one party misrepresents facts in the agreement, the other party has the option to void the contract.

How to avoid voidable and void agreements?

To avoid voidable agreements, it’s essential to ensure that both parties have agreed to the terms of the contract freely, without any pressure from the other party. The terms must be clear and unambiguous to prevent any misunderstandings.

On the other hand, to avoid void agreements, it is critical to ensure that the agreement is legal, and none of the terms violate any laws. This means that the agreement must not be against public policy, morality, or good customs.

In conclusion, understanding the differences between voidable and void agreements is crucial for anyone making a legal contract. While void agreements are unenforceable from the beginning and cannot be upheld by any court of law, voidable agreements can be voided by one party under certain conditions. It’s important to ensure that all parties involved in a contract have freely agreed to the terms and that the contract`s terms do not violate any laws. By following these guidelines, anyone can ensure that their contracts are valid and enforceable.