Difference Between Void, Voidable and Valid Contract

1. VALID CONTRACT :Valid contract is that which is enforceable at law. It creates legal obligations between the arties. It enables one art! to co"el another art! to do so"ething or not to do so"ething.

#arties Obligations :In case of $alid contract all the arties to the contract are legall! resonsible for the erfor"ance of a contract. If one art! brea%s the contract other has right to be enforced thro&gh the co&rt.

'(a"le :- A"&n rooses sell his one acre land to Nasir for one lac and the arties are caable to do the contract b! law law.. )o this contract is $alid. If A"&n fails to deli$er the land Nasir can s&e hi" in the co&rt for the deli$er! of land. On other hand Nasir fails to "a%e the a!"ent* A"&n can s&e hi" for the reco$er! of a!"ent.

+. VOID CONTRACT :De,nition :- An agree"ent not enforceable at law is a $oid contract.

Originall! it is a $alid contract b&t d&e to certain reasons it beco"es $oid after its for"ation. A $oid contract cannot be enforced b! either art!.

eat&res of Void Contract :a. It is not enforceable b! law. b. It creates no legal rights. c. It creates no obligations on an! art!. d. An agree"ent which is against the &blic olic! or against an! law is also $oid. e. /nder this contract no co"ensation can be aid to an! art!. An agree"ent in restraint of "arriage and trade are co""on e(a"les of $oid contract.

'(a"le :- )achin and Isha contract to "arr! on ne(t )&nda!. Isha dies before the )&nda!. The contract beco"es $oid.

Rights and D&ties :In this case the arties are not legall! resonsible to f&l,ll the contract. If an! art! has recei$ed an! bene,t is bo&nd to ret&rn.  This contract ta%es lace when consent of one of the arties is not free.

0. VOIDAL' CONTRACT :-

An agree"ent which is enforceable b! law at the otion of one or "ore of the arties* there to b&t not at the otion of the other or others is a $oidable contract.

eat&res of Voidable Contract :a. It is enforceable at law at the otion of one or "ore of the arties. b. A $oidable contract can onl! be ob2ected b! the art! who has been s&b2ect to fra&d* coercion* "isreresentation and &nd&e in3&ence. c. If the contract is re$o%ed b! a erson rightf&ll! then he can also recei$e the co"ensation. d. The contract is $oidable at the otion of the art! whose consent is ca&sed. e. Contracts ca&sed b! fra&d* &nd&e in3&ence* "isreresentation or b! coercion are $oidable contracts.

'(a"le :- 4r. 5adir threatens to shoot 4r. )hah to &rchase a car for one lac. 4r. )hah agrees the contract was "ade b! coercion and is $oidable at the otion of 4r. )hah.

Rights and D&ties : The aggrie$ed art! can cancel s&ch contract within a reasonable ti"e. It is also entitled to be co"ensated b! the other art!.

&rden of #roof :It is the resonsibilit! of the aggrie$ed art! to ro$e that her consent was obtained b! fra&d or coercion. If it fails to ro$e in the co&rt then contract will re"ain $alid. If the contract is not written or not registered it can not be enforced. &t as !o& will re"o$e this defect the contract can be enforced.

'(a"le :- )&ose A borrows the "one! fro"  and writes a ronote b&t roer a"o&nt sta"s are not osted on the ronote. Now in this case contract is $alid b&t not enforceable b! law.

6. /N'NORC'AL' CONTRACT :Contract is called &nenforceable when d&e to so"e technical di7c<! or lac% of an! for"alit! re8&ired b! the secial ro$isions of law a $alid contract is not enforced b! the co&rt.