What is the difference between valid void and voidable

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X 1 Enter Zip Code or City this may not be the same place you live. Breach of Contract. Contract Drafting and Review. Business Disputes. Typically, only one of the parties is bound to the terms.

The party that isn't bound may cancel the contract, making it void. The primary difference between void and voidable contracts is that a void contract can't be legally performed, while a voidable agreement can still be performed, as long as the unbound party doesn't void it prior to performance.

Just because someone enters into a contract under duress or fraud doesn't make it void. It just makes it voidable. Valid contracts have all the required elements and are legally enforceable in court. A valid contract creates legal obligations between contractual parties. Well, you signed a contract for a blue house, but now you show up and the house is green!

That is because the violation of the contract should not stop you from being able to buy the house. You signed for a blue house, but what if you do not mind the color green? A contingency is the dependence upon a stated event that must occur before a contract is binding, such as providing a blue house when you sign for a blue house.

If a contingency provision cannot be met, the contract can be legally voided, such as in the example given. Contracts entered into under duress, misrepresentation, or fraud are voidable, not void. For a contract to be valid, the accepting party must have considered the price or value for the exchange presented in the agreement.

The consideration does not only have to be money but can also be:. For example, the consideration when buying a car is the one party agrees to provide the car in exchange for money. Though some verbal agreements can be enforceable, some are required to be in writing to be considered valid. Written requirements typically are agreements that involve:. If a contract is considered void, it can never be enforced under the law and the parties signing it will not be bound by any of the terms.

A contract can be considered void if:. An example of a void contract would be when someone is hired by an employer, and the terms of the employment require job responsibilities that are considered illegal. Therefore, the contract would be void as it is against the law as it contracts elements.