A contract is an agreement enforceable by law. A void agreement is one which cannot be enforced by law. Sometimes an agreement which is enforceable by law, i.e., a contract, can become void. Void agreements are different from voidable contracts, Wikipedia
A contract may be deemed void should the terms require one or both parties to participate in an illegal act, or if a party becomes incapable of meeting the terms as set forth, such as in the event of one party's death.
What is a Void Contract? A void contract is a contract that isn't legally enforceable, starting from the time it was created. While both a void and voidable contract are null, a void contract cannot be ratified. In a legal sense, a void contract is treated as if it was never created and becomes unenforceable in court.
Void Contract – Elements
Looking at some of the elements of a contract can help to determine what can cause a contract to be void. 1. Acceptance of Offer: Both parti… Voidable Contracts
The terms “void” and “voidable” contracts are often used interchangeably but are completely different in nature. While a void contract is comple… Voiding A Contract – Steps
1. Determine which elements of the contract may render it void. 2. Pinpoint exactly which laws and reasons relate to the contract being void. 3. Ensure … Void Contract – Example
Bob enters into an agreement with a music label to split royalties from his new album 50/50. However, at the time of this agreement, Bob’s been dri… Voidable Contract – Example
Assume a situation similar to the previous example. This time, Bob is a minor and hasn’t had anything to drink. Since Bob is a minor, the contract is instantly … Other Considerations
While a contract may not be void when it is created, it is possible for other factors to render it void. New laws may come into effect that cause a contract to … Related Readings
Thank you for reading CFI’s guide to Void Contract. To keep advancing your career, the additional CFI resources below will be useful: 1. Completed Co… A void contract is not a valid agreement in the eyes of law. In other words, it has no legal effect and the purported contract terms cannot create enforceable obligations. If a contract is declared to be void, it is treated as if it never existed in the first place.
A void contract is a contract that isn’t legally enforceable, starting from the time it was created. While both a void and voidable contract are null, a void contract cannot be ratified. In a legal sense, a void contract is treated as if it was never created and becomes unenforceable in court.
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×A void contract is
not a valid agreement in the eyes of law. It has no legal effect and the purported contract terms cannot create enforceable obligations. If a contract is declared to be void, it is treated as if it never existed in the first place. A void contract cannot be ratified. In a legal sense, a void contract is treated as if it was never created and becomes unenforceable in court.
