An agreement enforceable by law is a contract.

It creates legal obligation within the parties to the agreement.

1.
2.
3.
4.
5.

Validity
Valid
Void
Voidable
Illegal
Unenforceable

6.
7.
8.

Formation
Express
Implied
Quasi

Section 2(j) A contract which ceases to be enforceable by law

becomes void when it ceases to be enforceable
Section 2(i) An agreement which is enforceable by law at the
option of one or more of the parties thereto, but not at the option of
other or others, is a voidable contract.

(i) It is made on account of natural love & affection and it is

expressed in writing and registered
(ii) It is a promise to compensate, a person who has already
voluntarily done something for the promisor.
(iii) It is a promise to pay a time barred debt

Agreement in restraint of marriage of any major person is

void (Section 26)

Agreement in restraint of trade is void. (Sec. 27): Sale of Goodwill
Partnership Act exception to the rule as per Judicial
Interpretation

The key Distinction between Void & Voidable contact

Basis

Void Contract

cannot be
enforceable.

one of the two parties has

the option to enforce or
rescind it.

Defined in

Section 2 (j).

Section 2 (i).

Nature

The contract is
The contract is valid, until
valid, but
the party whose consent is
subsequently
not free, does not revokes
becomes invalid due it.
to some reasons.

Rights party

Suit for
damages

No

Yes, but only to the

aggrieved party.

Not given by any

Damages can be claimed by
party to another
the aggrieved part
party for the nonperformance, but
any benefit received
by any party must
be restored back.

Circumstances when a contact are said to be void

Void Contracts can be of following two types:(i) Void ab initio :- i.e. unenforceable from the
very beginning
(ii) Void due to the impossibility of its
performance
the situation or circumstances when a contract becomes void if
Any agreement with a bilateral mistake is void.(Section 20)

Exclusive Dealing Agreements

Voidable Contract

Meaning

Agreements which have unlawful consideration and objects are

void.(Section 23 & 24)

Agreements made without consideration is void.(Section 25) :unless :-

Restraints Upon Employee

Agreement in restraint of legal proceedings is void. (Section

28) : An agreement the terms of which are uncertain is void.
(Section 29) : An agreement by way of wager (betting/gambling) is void.
(Section 30)
An agreement contingent upon the happening of an
impossible event is void. (Section 36)
Agreement to do impossible acts is void. (Section 56)

Void contracts are unenforceable by law. Even if one party

breaches the agreement, you cannot recover anything because
essentially there was no valid contract.
Voidable contracts are valid agreements, but one or both of the
parties to the contract can void the contract at any time. As a result,
you may not be able to enforce a voidable contract:
Cundy v Lindsay (1878).
Bell v Lever Bros Ltd [1932]
Lord Denning MR in Lewis v Averay
Void contract is the contract which are not enforceable in the court
of law. At the time of formation of the contract, the contract is valid
as it fulfills all the necessary conditions required to constitute a
valid contract, i.e. free consent, capacity, consideration, a lawful
object, etc. But due to subsequent change in any law or
impossibility of an act, which are beyond the imagination and
control of the parties to the contract, the contract cannot be
performed and hence it becomes void. Further, no party cannot sue
the other party for the non-performance of the contract.
The contract becomes void due to the change in any law or any
government policy for the time being in force in India. Along with
that the contracts which are opposed to public policy also ceases its
enforceability. Contracts with incompetent persons are also
declared void like minor, persons of unsound mind, alien enemy or
convict etc.
Voidable Contract is the contract which can be enforceable only at
the option of one of the two parties to the contract. In this type of
contract, one party is legally authorized to make decision to
perform or not to perform his part. The aggrieved party is
independent to choose the action. The right may arise because the
consent of concerned party is influenced by coercion, undue
influence, fraud or misrepresentation etc.

The contract becomes valid until the aggrieved party does not
cancels it. Moreover, the party aggrieved party has the right to
claim damages from the other party.
Differences:
1. A contract which lacks enforceability is Void Contract. A
contract which lacks the free will of one of the parties to
contract is known as Voidable Contract.
2. Void Contract is defined in section 2 (j) while Voidable
Contract is defined in Section 2 (i) of the Indian Contract
Act, 1872.
3. A void contract was valid at the time when it is created,
but later on it becomes invalid. Conversely, voidable
contract is valid until the aggrieved party, does not revokes
it within stipulated time.
4. When it is impossible, for an act to be performed by the
parties it becomes void, as it ceases its enforceability.
When the consent of the parties to the contract is not free,

5.
6.

the contract becomes voidable at the option of the party

whose consent is not free.
In void contract, no party can claim any damages for the
non-performance of the contract. On the other hand, the
aggrieved party can claim damages for any loss sustained.
a void contract cannot be performed under law, whereas
with a voidable contract, performance is still possibleA

CONCLUSION
There are many contracts which are valid, but sometimes due to
certain circumstances, they cease to be enforceable which makes
them a void contract because it is impossible that the contract is to
be further executed. Similarly, there are many people who
unlawfully induce or persuade the will of another person to enter
into a contract, which becomes voidable at the option of the party
whose consent was so induced.