A void contract and a void agreement are two legal terms that often confuse people. Both of these terms are related to contracts and agreements, but they differ in their legal implications. In this article, we will discuss what a void contract and void agreement are, their legal significance, and how they differ from each other.

What is a Void Contract?

A void contract is an agreement that is not legally binding and cannot be enforced by either party. It is often referred to as a null and void contract. This type of contract is considered invalid from the outset and cannot be enforced in court.

A contract may be considered void for various reasons, including:

1. Lack of capacity: If a person who is not legally competent, such as a minor or a person with mental incapacity, enters into an agreement, it will be void.

2. Misrepresentation or fraud: If one party makes false statements or conceals information, the contract may be void.

3. Illegal purpose: If the purpose of the agreement is illegal, then the contract will be void. For example, if two parties enter into a contract to smuggle drugs, it would be considered void.

4. Duress or undue influence: A contract entered into under duress or undue influence is void.

What is a Void Agreement?

A void agreement is also an agreement that is not legally binding and cannot be enforced by either party. However, the difference between a void contract and a void agreement is that an agreement is not legally enforceable if it is made for an immoral or illegal purpose.

For example, if two parties agree to commit a crime, the agreement would be void. Similarly, an agreement to commit an act that is against public policy, such as an agreement to bribe a public official, would also be void.

The legal significance of a void contract and void agreement is that they are both treated as if they never existed in the first place. This means that neither party can sue or be sued for any damages or losses related to the agreement.

How Does a Void Contract Differ from a Void Agreement?

The main difference between a void contract and a void agreement is the reason for their invalidity. A void contract is invalid because it does not meet the legal requirements for a contract, while a void agreement is invalid because it is against the law.

Another difference is that a void contract can be treated as if it never existed and the parties can be restored to their original position. However, a void agreement cannot be restored because it was never valid in the first place.

Conclusion

In summary, a void contract and a void agreement are two legal terms that describe an agreement that is not legally binding and cannot be enforced by either party. The difference between them is that a void contract is invalid because it does not meet the legal requirements for a contract, while a void agreement is invalid because it is against the law. It is important to understand the legal implications of these terms when entering into any type of agreement.