What is a Void Agreement?
An agreement, which is not enforceable by law, is void agreement. A void contract should be distinguished from void agreement.
The differences between them are:
1. A void agreement is void from the very beginning (i.e. void ab initio), whereas a void contract is valid at the time of its formation but become void subsequently.
2. An agreement may be known to be void to the contracting parties from the beginning. On the other hand, a contract becomes void due to the subsequent impossibility or illegality of performance. Therefore, the party may know it only subsequent to the contract.
Differences between Voidable Contract and Void Agreement
The point of distinction between Voidable Contract and Void Agreement are given below.
1. A voidable contract is voidable at the option of one of the parties thereto. But a void agreement cannot be enforced by any one of the parties thereto.
2. The defect in the case of voidable contract is curable and may be condoned, whereas a void agreement is void ab initio, and its defects are not curable.
3. A voidable contract does not become void unless the party at whose option it is voidable repudiates it. But a void agreement is void ab initio.
4. A voidable contract implies a contract, in which the consent of one of the parties to contract is not free, whereas a void agreement denotes an agreement, which does not fulfill the essentials of a valid contract.
5. In case of a voidable contract, a person is entitled to compensation for loss or damages suffered by him on account of the non-performance of contract. But in a void agreement, as it is unenforceable at law there does not arise any question of compensation due to the non-performance of the agreement.