Question

2. Explain about void, voidable and unenforceable contracts. Out of void, voidable and unenforceable contracts which are valid contracts. Why a contract will be void, voidable and unenforceable.  

Answer 1

1) Void, Voidable, and Unenforceable contract:

Void contract: A void contract is a formal agreement that is effectively unlawful and unenforceable from the moment it is built. A void contract does not have more than one essential element of a valid contract.

For example, a contract for selling or purchasing an illegal drug is a void contract because it is not made for a lawful purpose.

Voidable contract: A voidable contract is a formal agreement between two parties that may be provided unenforceable for some legal reasons. Reasons that can make a contract voidable are the following: Failure by one or both parties to disclose a material fact. A mistake, misquote, or fraud.

For example: if under a contract, one party fails to disclose material facts regarding the contract, the other party has the option to continue with the contract or withdrawal from the contract.

Unenforceable contract: An unenforceable contract or transaction is one that is valid but one the court does not enforce. which is usually used in conflict to void and voidable. If the parties execute the agreement, it will be valid, but the court will not force them if they don't.

For example: if a contract is not properly documented or written, or it's written but terms are not clear, it may become an unenforceable contract.

2) Voidable and unenforceable contracts are valid contracts. A valid contract is a written or expressed agreement between two parties to give to a product or service.

A void contract is not a valid contract. A void contract is a contract that is not legally enforceable, starting from the time it was generated. But, both a void and voidable contract are null, a void contract cannot be ratified. In a legal sense, a void contract serves as if it was do not created and becomes unenforceable in court.

3)

If a contract will be void :

• it is illegal, made for an unlawful purpose.
• the consent is not mutual.
• the consideration is unlawful.
• it is incomplete.
• any of the parties does not have the capacity to enter into the contract.

If the contract will be voidable :

• the consent is obtained by misrepresentation of facts.
• consent is obtained through undue influence, fraud.
• a contract is made with a person who has incapacity to enter into a contract such as a minor.

If the contract will be unenforceable,

• it is against or not complying with the applicable law of the place.
• the terms of the contract are not clear.
• the contract is not written