VOID AND VOIDABLE CONTRACTS

VOID AND VOIDABLE CONTRACTS

The consequence of a void contract or any action at all, is that it has no legal force or binding effects. It is null, nugatory and incapable of being ratified.

A contract is VOID ab initio, i.e. from the very beginning or at the inception if it seriously offends law and public policy.

A contract is VOIDABLE if it is defective, but is capable of confirmation or ratification. In a lay man’s language the contract is repairable by ratification e.g.

A minor does not have the capacity to enter into a contract; therefore, any contract he makes is voidable.

However, the contract is not void, and, therefore, it is binding on the competent party unless the minor repudiates it.

A voidable transaction is one that can be affirmed by a party entitled to void it.