When it comes to business transactions, contracts are an essential tool. They establish the terms and conditions of the agreement between parties and provide a legal framework for resolving disputes. However, not all contracts are created equal, and in some cases, a contract may be considered void or voidable. In this article, we will take a closer look at what void and voidable contracts are and how they differ from each other.

What is a void contract?

A void contract is a contract that is considered invalid from the moment it was created. In other words, it has no legal effect, and therefore, the parties involved cannot enforce it. A contract may be considered void if:

– The contract is made for an illegal purpose

– The contract is against public policy

– The contract is made by a person who is not legally competent to enter into a contract

– The contract is based on a mutual mistake of fact

For example, if two individuals enter into a contract to commit a crime, the contract would be void and unenforceable since it is against the law.

What is a voidable contract?

A voidable contract, on the other hand, is a contract that is valid and enforceable at the time it was created, but one or both parties have the option to rescind or cancel the contract. A contract may be considered voidable if:

– One party lacked capacity to enter into the contract (such as a minor or someone under duress)

– One party was deceived or coerced into entering into the contract

– The contract was based on a unilateral mistake of fact

For example, if a person agrees to enter into a contract to buy a car from a dealership, but later finds out that the dealership misrepresented the condition of the vehicle, the buyer may have the option to cancel the contract.

How does this relate to PDFs?

When it comes to contracts, it is important to have a clear and concise agreement in writing. This is where PDFs come in handy, as they provide a digital format that can be easily shared, signed, and stored. However, it is also essential to ensure that the contract is valid and enforceable in the first place.

Before signing a contract in PDF format, it is essential to read and understand the terms and conditions. If you have any doubts or concerns, it is best to seek legal advice to ensure that the contract is not void or voidable.

In conclusion, void and voidable contracts are important legal concepts that can have significant consequences for business transactions. By understanding the differences between the two, individuals can make informed decisions about entering into contracts and ensure that their agreements are legally enforceable.