Is Your Agreement Enforceable? Difference Between Void and Valid Contracts Explained

What Is a Valid Contract?

A legal contract is therefore enforceable. It implies that when one party refuses to honor the promise, the other is allowed to sue them and receive damages or have the terms enforced.

Suppose you get into a contract to purchase a car at a price of 5 lakhs. It is agreed upon with both parties, in writing, and it is legal. That is a legal contract.

What Makes a Contract Void?

A void contract is not enforceable by law. It’s as if the contract never existed. The most common void agreements include contracts made with minors, or ones involving illegal acts.

As an example, when you enter into an agreement to sell alcohol, unlicensed, you enter into a void contract. The law cannot be enforced even when both parties are in agreement.

Why It Matters

Understanding the difference between void and valid contract helps avoid legal troubles. A contract must meet legal requirements—free consent, lawful object, capacity, and consideration. Miss one, and it may be void.

FAQs

Q1: Are all oral contracts void?

Yes, oral contracts are valid but the written contract can be easily enforced.

Q2: Can a void agreement become valid?

No. Any agreement which is void from the beginning can never be made valid.

Q3: Is a contract signed with a minor valid?

No. It's a void contract as minors lack capacity to contract.

Q4: What is the legal effect of a void contract?

A void contract has no legal effect. It is not binding on either party, and courts will not enforce it.

Q5: How is a void contract different from a voidable contract?

A void contract is invalid from the start. A voidable contract is valid unless one party chooses to cancel it—for example, due to misrepresentation or coercion.