A contract is a voluntary arrangement between two or more parties that is enforceable at law as a

binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the
civil law tradition. Contract law concerns the rights and duties that arise from agreements. A
contract can be both written or oral.
Elements of contract:
The elements of any contract are:
Offer: An offer states the willingness and the ability of a party to perform a work in return of
consideration. An offer is also known as a proposal and it is expressed either verbally or through
writing. Hence, an offer plays a dominant role in the formation of a contract.
Acceptance: An acceptance creates a contract and terminates the power of revocation. An offer
or proposal can be accepted, rejected or amended which must be a voluntary act. An amended
offer is known as a counter offer in which the previously offering party is now being offered a
modified offer by the previous offered party. Acceptance of an offer is crucial for determining the
legality of the contract. If a contract is accepted through coercion, undue influence or
misrepresentation the offer can be made voidable
Mutual Assent: The parties understand and agree to the basic substance and terms of the
contract. Both parties should agree to be legally obligated to the terms and consideration of the
contract.
Consideration: Consideration is the factor that persuades the parties to enter into the contract. A
consideration is the value promised by a promisor for performing or not performing any task. It
can be in terms of money, services, assets or refraining from performing 3 .
Void Contracts - a void contract is not a contract and has no effect in a court of law and cannot be
enforced in a court of law. Most commonly, a void contract will be missing one or all of the
essential elements needed for a valid contract. Neither party needs to take action to terminate it,
since it was never a contract to begin with.
Example A contract that was between an illegal drug dealer and an illegal drug supplier to
purchase a specified amount of drugs for a specified amount. Either one of the parties could void
the contract since there is no lawful objective and hence missing one of the elements of a valid
contract.
Voidable Contracts
A voidable contract is a contract which may appear to be valid and has all of the necessary
elements to be enforceable, but has some type of flaw which could cause one or both of the
parties to void the contract. The contract is legally binding, but could become void. If there is an

injured party involved, the injured party or the defrauded must take action, otherwise the contract
is considered valid.
Example A contract entered into with a minor could be voidable.

In which cases a contract can be void?

An agreement is said to be void because of mistake, lack of consideration, want of capacity etc.
A list of void agreements is given below:
1. Lack of capacity.
2. Mutual mistake of fact.
3. Unlawful consideration or object.
4. Consideration or object partly unlawful.
5. Agreements without consideration.
6. Agreements in restraint of trade.
7. Agreements in restraint of legal proceedings.
8. Uncertain Agreement.
9. Agreements by way of wager.
10. Impossible acts.
11. Agreements contingent on impossible event.
12. Reciprocal promises where there are void promises.
13. Agreement is restraint of trade

Definition of Void Contract:

A void contract is a contract which is not enforceable in the court of law. At the time of
formation of the contract, the contract is valid as it fulfills all the necessary conditions required
to constitute a valid contract, i.e. free consent, capacity, consideration, a lawful object, etc. But
due to a subsequent change in any law or impossibility of an act, which are beyond the
imagination and control of the parties to the contract, the contract cannot be performed, and
hence, it becomes void. Further, no party cannot sue the other party for the non-performance of
the contract. The contract becomes void due to the change in any law or any government policy
for the time being in force in India. Along with that, the contracts which are opposed to public
policy also ceases its enforceability. Contracts with incompetent persons are also declared void
like minor, persons of unsound mind, alien enemy or convict, etc.

Definition of Voidable Contract:

Voidable Contract is the contract which can be enforceable only at the option of one of the two
parties to the contract. In this type of contract, one party is legally authorized to make a decision
to perform or not to perform his part. The aggrieved party is independent to choose the action.
The right may arise because the consent of the concerned party is influenced by coercion, undue
influence, fraud or misrepresentation, etc. The contract becomes valid until the aggrieved party
does not cancel it. Moreover, the party aggrieved party has the right to claim damages from the
other party.

Void contract
1

A void agreement is void from the

beginning; for this reason it can not be
called as a contract.
A void agreement confers no right on any
person and creates no obligations

Voidable contract

A voidable agreement is one, which can be

terminated, i.e., set aside by aggrieved parties to
it. Until it is terminated, it is a good contract.
But in case of voidable agreement the rights and
obligations of the parties concerned are present
unless it is cancelled.
As a void agreement is not enforceable But in case of voidable agreement, contract is
from the beginning it is not necessary for enforceable unless it is cancelled by aggrieved
the effected party to declare the agreement party.
void.

In case of void agreement the party is not

bound to refund the benefit received to the
other party.
A void agreement originates by an
agreement made by a minor, agreements
without consideration, certain agreements
against public policy, illegal objectives.
The rights obtained by void agreement, if
transferred to a third party, the third party
does not, under any circumstances obtains
a legal title.

But in case of voidable agreement the party may

refund the benefit to the aggrieved party, if the
agreement becomes void later on.
A voidable agreement originates by contracts
brought about by coercion, undue influence, and
misrepresentation
In case of voidable agreement, unless the
effected party declared the agreement to be void,
the third party gains legal title for the rights
transferred, if he acts upon good faith.

In which cases a contract can be void?

An agreement is said to be void because of mistake, lack of consideration, want of capacity etc.
A list of void agreements is given below:
1. Lack of capacity.
2. Mutual mistake of fact.
3. Unlawful consideration or object.
4. Consideration or object partly unlawful.
5. Agreements without consideration.
6. Agreements in restraint of trade.
7. Agreements in restraint of legal proceedings.
8. Uncertain Agreement.
9. Agreements by way of wager.
10. Impossible acts.
11. Agreements contingent on impossible event.
12. Reciprocal promises where there are void promises.
13. Agreement is restraint of trade

Examples

A promises B to sell his horse after one month to B for Rs. 50,000. Before the completion of one
month, the horse died. Now, the contract becomes void as the contract cannot be performed, i.e.
the object on which the parties agreed is no more, so there is an impossibility of performance of
the contract. This type of Contract is known as Void Contract.
X says to Y, that he should sell his new bungalow to him at a nominal price otherwise, he will
damage his property and Y enters into a contract due to fear. In this situation, the contract
voidable as the consent of Y is not free, so he has the right to avoid the performance of his part.
As well as he can claim for any damages caused to him.

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Definition of contract
Process
Void defiation
Voi defiantoo
Diifeer
Exman