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DIFFERENCE BETWEEN VOID AGREEMENT AND VOIDABLE CONTRACT

BASIS OF DIFFERENCE VOID AGREEMENT VOIDABLE CONTRACT

Void ab-intio It is void from the very

beginning

It is valid when made and

continues to remain valid

till it is repudiated by the

aggrieved party.

Which essential element

of contract is missing

It is void because an essential

element of a valid contract is

missing

It is voidable because the

consent of a party is not

free.

Enforceability It cannot be enforced by any

party

It continues to be

enforceable if the

aggrieved party does not

repudiate the contract.

Right of third party Third party does not acquire

any rights.

A third party who

purchases goods in good

faith and for consideration

before the contract is

repudiated acquires good

title of those goods.

Effect of lapse of

reasonable time

Even on the expiry of a

reasonable time, it can never

become a valid contract.

On the expiry of

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

does not arise.

The aggrieved party can

claim damages.