A void contract is invalid from the start due to illegality or impossibility, while a voidable contract is initially valid but can be cancelled later. Contracts can be void if they involve illegal activities, coercion, or are impossible to perform. Minors can enter into voidable contracts but need an adult co-signer. It is important to review contracts carefully and have them checked by a lawyer to ensure legality.
A void contract is a legal contract that is invalid from the outset because some aspect of the contract makes it unenforceable or illegal. This is in contrast to a voidable contract, a contract that is valid at the time it is created but can be canceled or canceled later. It is important to distinguish between these two legal concepts because while no performance is required in a void contract, it is possible to be bound by a voidable contract.
There are several reasons why a contract can be cancelled. The first reason is because the contract involves an illegal activity; people cannot be forced by law to participate in an illegal act. For example, a contract between a drug dealer and a customer is a void contract. Thus, drug dealers cannot sue their customers for default because there is no contract to hold the customer by.
Another reason a contract might be void is because it is structured in such a way that it cannot be performed. A variety of things can make performance of a contract impossible. The incorrectly structured or illegitimate contract is also void. For example, wiseGEEK cannot make a contract with President Roosevelt, because President Roosevelt is dead and the contract is not enforceable. Similarly, a contract involving coercion can be considered void because it is not legal.
With a voidable contract, on the other hand, one party is bound by the contract but it can be canceled later, though not necessarily voidable. A classic example of a voidable contract is any contract involving a minor. Minors can enter into contracts, but these contracts cannot be enforced. For this reason, minors are often asked to have an adult co-signer, so that the other party to the contract can be sure of its fulfillment. College students applying for underage student loans, for example, will be asked to have a cosigner to guarantee the loan.
People don’t usually set out to write a null contract. There have been situations where people have tried to sue for non-performance or other issues and have learned in the course of litigation that the contract is void and there is no legal recourse. When signing or writing a contract, it is very important to review it carefully and have it checked by a lawyer to confirm that it will be legally valid and to ensure that all terms of the contract are fully understood.
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