A void contract is a legal agreement that is considered to be null and void from the beginning, as if it never existed. This means that the contract is not legally enforceable and cannot be enforced by either party. Unlike a voidable contract, which can be cancelled or voided by one or both parties due to certain circumstances, a void contract is void from the outset.
A contract can be void for a variety of reasons. One common reason is if the contract is illegal. For example, a contract to commit a crime or engage in illegal activities would be void. Another reason for voiding a contract is if one of the parties lacked the capacity to enter into the agreement. This can include situations where one party is a minor, mentally incapacitated, or under duress.
It`s important to note that a void contract is different from a voidable contract. A voidable contract is an agreement that may be cancelled or voided by one or both parties for certain reasons, such as fraud, misrepresentation, or undue influence. In contrast, a void contract is not legally enforceable from the beginning, as if it never existed.
It`s also important to understand that a void contract cannot be ratified, meaning that the parties cannot make the contract valid by agreeing to it again. For example, if a contract was void because one of the parties lacked capacity to enter into the agreement, that party cannot later agree to the contract once they have the capacity to do so.
In conclusion, a void contract is a legal agreement that is considered null and void from the beginning. It cannot be enforced by either party and is not legally binding. If you are unsure whether a contract is void or voidable, it`s important to consult with a legal professional to determine your rights and options.