Distinguish between Void Voidable and Illegal Contracts
Contracts are important legal agreements that people enter into in various spheres of life, including business, employment, and personal relationships. These contracts can be classified into different types, such as void, voidable, and illegal, depending on their nature and status. In this article, we will explore the differences between these types of contracts and their implications.
Void Contracts
A void contract is one that is considered to be invalid from the outset, meaning that it never existed legally. This can be due to various reasons, such as the contract being against the law or public policy, or one of the parties being unable to enter into the contract due to mental incapacity or being a minor.
In the case of a void contract, neither party can enforce its terms, and neither party is entitled to recover any amount of money or goods exchanged. The contract is simply null and void, and it has no legal standing.
Voidable Contracts
A voidable contract, on the other hand, is a contract that is initially valid, but one of the parties has the right to void or cancel it due to some legal deficiency. The party with this right can choose to either enforce or void the contract, depending on their choice.
Some examples of situations that may make a contract voidable include fraud, duress, undue influence, misrepresentation, and mistake. If any of these factors are present, the party who was impacted can choose to void the contract and seek remedies for any damages they may have suffered.
It is important to note that the party with the right to void the contract must do so within a certain time frame, and if they do not, the contract becomes binding and enforceable.
Illegal Contracts
An illegal contract is one that is entered into for an unlawful purpose or violates public policy. These contracts are void from the outset, similar to void contracts.
Examples of illegal contracts include contracts for the sale of illegal drugs, contracts for prostitution, and gambling contracts. These contracts are not enforceable in court, and the parties involved cannot seek remedies for any damages suffered.
In conclusion, understanding the differences between void, voidable, and illegal contracts is important in ensuring that you enter into legally binding agreements. If you ever find yourself in a situation where you need to void a contract, it is essential to seek legal advice and act in a timely manner. By doing so, you can protect your rights and avoid any legal consequences.
