Void Agreement and Voidable Agreement Difference
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Void Agreements
A void agreement is one that is not legally enforceable from the beginning. It is deemed to be invalid and unenforceable by law. A void agreement has no legal effect and does not create any rights or obligations for the parties involved. This can be for various reasons such as:
– The agreement is illegal: An agreement that violates any law or is against public policy is illegal, and hence void.
– The agreement is made under a mistake: If a mistake is made about the subject matter or the terms of the agreement, then it may be void.
– The agreement is made under coercion: If one party is forced or threatened into entering into an agreement, then it is void.
– The agreement is made with a person who lacks capacity: If a contract is made with someone who lacks the mental capacity or is a minor, then it is generally void.
Voidable Agreements
A voidable agreement is one that is legally enforceable, but one party has the option to cancel or rescind it due to certain legal reasons. A voidable agreement may be valid and enforceable until it is voided by the party with the option to do so. Some examples of voidable agreements are:
– Agreements made under duress: If one party is forced or threatened into entering into an agreement, the agreement may be voidable.
– Agreements made under misrepresentation: If one party is induced to enter into an agreement by false statements made by the other party, then it may be voidable.
– Agreements made with minors: If a contract is made with a minor, then it is generally voidable at the minor`s option.
– Agreements made with a person who lacks capacity: If a person lacks the mental capacity to understand the terms of the agreement, then the agreement may be voidable.
The key difference between void agreements and voidable agreements is that a void agreement is not valid from the outset, while a voidable agreement is valid but may be canceled or rescinded by one party for certain legal reasons.
In conclusion, it is important to understand the difference between void agreements and voidable agreements. While a void agreement is not legally enforceable from the beginning, a voidable agreement can be enforced but may be canceled or rescinded by one party due to certain legal reasons. It is crucial to consult a legal expert if you are unsure about the validity of an agreement.