Difference Between Void Agreement and Voidable Contract &Illegal Agreement

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 A void agreement and a voidable contract are both legal terms used to describe situations where a contract may not be enforceable, but there are key differences between the two:


1. Void Agreement:

   - A void agreement is one that is not legally binding from the outset. It lacks the essential elements required to be considered a valid contract. These essential elements include offer, acceptance, consideration, capacity, intention to create legal relations, legality of purpose, and certainty of terms.

   - Examples of void agreements include agreements made by parties who are not legally competent (such as minors or mentally incapacitated individuals), agreements with unlawful objectives (such as agreements to commit a crime), or agreements that violate public policy.


2. Voidable Contract:

   - A voidable contract, on the other hand, is initially considered valid and enforceable, but due to certain circumstances or defects, one or both parties have the option to either enforce or void the contract at their discretion.

   - The defects that can make a contract voidable include misrepresentation, fraud, undue influence, coercion, or the incapacity of one of the parties. For example, if a party enters into a contract under duress or because of false information provided by the other party, they may have the option to void the contract.

   - A voidable contract remains valid until the aggrieved party chooses to either affirm or reject it. If the aggrieved party decides to void the contract, they must do so promptly and communicate this decision to the other party.


Illegal Agreement:

  • An illegal agreement, on the other hand, is one that is formed with the intention to carry out an illegal act or purpose. In other words, the subject matter or the objective of the agreement itself violates the law.
  • Illegal agreements may involve contracts to commit crimes, contracts that violate statutory regulations (such as agreements to sell illicit drugs), or contracts that contravene public policy (such as agreements to engage in bribery or corruption).
  • Unlike void agreements, illegal agreements may possess all the essential elements of a valid contract, such as offer, acceptance, and consideration. However, the illegality of the subject matter renders the agreement unenforceable by the courts.
  • In many jurisdictions, courts will not assist parties in enforcing illegal agreements, and in some cases, the parties to an illegal agreement may face legal consequences for their actions.

In summary, the main difference between a void agreement and a voidable contract lies in their enforceability and the circumstances under which they are considered unenforceable. A void agreement lacks the essential elements of a contract from the beginning, while a voidable contract is initially valid but may become void if certain conditions or defects are present.

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