Difference Between Void Contract & Voidable Contract

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Let's examine the distinction between a void and voidable contract in tabular form for a better understanding:

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A Void Contract: What Is It?

Definition of a void contract: A contract that is void from the moment of its creation or that subsequently loses its validity is known as a void contract.

A legally binding agreement may at some point become null and void. A legitimate contract needs to have the following components in order for the parties to establish one: an offer and acceptance, competent contracting parties, lawful consideration, lawful object, and free consent. The above-mentioned key components of the contract shall become void if any of them later become impracticable. Furthermore, a contract loses its legal enforceability the moment it is declared void. Let's look at an illustration to gain a better understanding of the word "void contract."

Examples of void contracts:

Ankit and Shubham came to an agreement whereby Ankit would buy Shubham's laptop and give him a packet of heroin, a highly addictive substance. The supplied commodity is unlawful, so this contract is null and void.

Shreya made a deal with Riya whereby she would pay ₹20 for her laptop, which has a value of one lakh. Since Riya is mentally incompetent, she gladly signs this contract. However, this contract is null and void because it cannot be made by someone who is not mentally sound, as per the Indian Contract Act. Therefore, this contract was void from the beginning.

A Voidable Contract: What Is It?

Definition of a voidable contract: A voidable contract is a kind of agreement that may only be declared void by one of the parties involved, and only that person is able to enforce the agreement legally.

One party may choose to fulfill his or her obligations under a voidable contract. Moreover, this agreement is only enforceable by the unhappy party until it is cancelled. A party who is not satisfied may terminate the agreement for a number of reasons, including failure to disclose all relevant information, fraud or deception, mistake in the agreement, violation of the terms, etc. To further grasp what is meant by "voidable contract," let's look at an example.

Examples of voidable contracts: 

Shubham and Ankit signed a bailment contract. The agreement states that Ankit will pay ₹30 a piece for 100 premium candies from Shubham's sweet business. Consequently, the contract's total cost comes to ₹30,000. Shubham sold Ankit 100 pieces of sweets after accepting the contract. Half of the candies, meanwhile, were of low quality. Because Shubham didn't follow the conditions of the contract, Ankit can now decide to declare it void.

Shreya and Riya worked out an arrangement for Shreya to pay ₹30,000 for the laptop. But when Riya signed the agreement, she was still a minor. Because Riya cannot communicate, this contract is voidable. 

Under the Indian Contract Act, an individual who is not a major or who has turned 18 cannot enter into a contract. The signed contract will therefore be voidable.

Important Distinctions between Voidable Contract and Void 

The following are some significant distinctions between void and voidable contracts: 

• A contract that is voidable can be enforced by the law, while a contract that is void cannot.
• The Indian Contract Act of 1872 defines voidable contracts in Section 2 (I) and void contracts in Section 2 (j).
• A void contract is not enforceable from the moment it was made. Conversely, the voidable contract doesn't expire until the unhappy party doesn't take action to withdraw it within the allotted time frame.
• In the event that a contract is void, neither party may pursue damages for breach of contract. Alternatively, the aggrieved party may pursue damages reimbursement.