Difference Between Void Agreement and Voidable Contract

DIFFERENCE BETWEEN VOID AGREEMENT AND VOIDABLE CONTRACT

BASIS OF DIFFERENCE

VOID AGREEMENT

VOIDABLE CONTRACT It is valid when made and

Void ab-intio

It is void from the very

continues to remain valid

beginning

till it is repudiated by the aggrieved party.

Which essential element of contract is missing

It is void because an essential

It is voidable because the

element of a valid contract is

consent of a party is not

missing

free. It continues to be

Enforceability

It cannot be enforced by any

enforceable if the

party

aggrieved party does not repudiate the contract. A third party who purchases goods in good

Right of third party

Third party does not acquire

faith and for consideration

any rights.

before the contract is repudiated acquires good title of those goods. On the expiry of

Effect of lapse of reasonable time

Even on the expiry of a reasonable time, it can never become a valid contract.

reasonable time, it may be come a valid contract, if the aggrieved party does not repudiate the contract within reasonable time.

Damage

The question of damages

The aggrieved party can

does not arise.

claim damages.

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