Void Contracts vs Voidable Contracts

Both void and voidable contracts are types of contracts that are considered legally unenforceable, but the key difference between them lies in the circumstances that render them unenforceable.

A void contract is a contract that is considered null and void from the outset, meaning it is not legally enforceable from the moment it is created. Examples of void contracts include contracts that involve illegal activities or contracts that are based on fraud.

On the other hand, a voidable contract is a contract that may be unenforceable at the option of one or more of the parties involved. In other words, a voidable contract is a contract that is initially valid, but one or more parties have the right to cancel or void the contract due to certain legal reasons. Examples of situations that may make a contract voidable include undue influence, misrepresentation, duress, or incapacity of one of the parties.

In summary, the key difference between void and voidable contracts is that a void contract is null and void from the outset, while a voidable contract is initially valid but may be canceled or voided under certain legal circumstances.
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