When it comes to legal contracts, there are two common terms that may cause confusion – void contracts and void agreements. While both terms may seem similar, they have different meanings and implications. Understanding the difference between the two can come in handy, especially when you`re dealing with legal situations like contract disputes.

Void Contracts

Void contracts refer to agreements that are considered invalid from their creation. This means that they are not legally binding and have no legal force or effect. A void contract is a contract that is deemed to be unenforceable, and it has no legal effect whatsoever. A contract can be deemed void for various reasons, including:

– Lack of legal capacity: If one or both parties involved in the contract do not have the legal capacity to enter into an agreement, it will be considered void. For example, contracts signed by minors or people who are mentally incompetent are considered void.

– Illegality: If the subject matter of the contract is illegal, such as a contract to commit a crime, it is invalid and will be deemed void.

– Mistake: If there is an essential error in the contract, such as a mistake in the price or a mistake in the identity of one of the parties involved, the contract will be deemed void.

Void Agreements

On the other hand, a void agreement is an agreement that is valid at its creation, but it becomes invalid later on due to specific circumstances. A void agreement can be a valid contract, but it becomes void due to illegality or other legal grounds. A contract can be void for various reasons, including:

– Coercion: If a party was forced or threatened to enter into the agreement, the contract would be considered void.

– Misrepresentation: If one or both parties involved in the agreement provide false information, it will be considered void.

– Mistake: If there is an essential error in the agreement, such as a mistake in the terms or subject matter, the agreement will be void.

The key difference between void contracts and void agreements is that void contracts are invalid from the start, while void agreements become invalid later on. Void contracts are not legally enforceable, while void agreements may be legally binding until they become void.

Conclusion

In conclusion, understanding the difference between void contracts and void agreements is crucial when dealing with legal agreements. Void contracts and void agreements may seem similar, but they have different meanings and implications. Knowing the difference between the two will help you avoid legal disputes and make informed decisions when entering into agreements.