Different Types of Void Agreements and Contracts

Contracts and agreements are essential in any business transaction, providing a legally binding agreement between parties. However, not every agreement is enforceable by law, and some are considered void. This article explores the different types of void agreements and contracts.

Void Agreements:

A void agreement is considered invalid from the very beginning, meaning it cannot be enforced by law. There are several reasons for an agreement to be considered void, including:

1. Agreement involving illegal activities:

Agreements that involve illegal activities, such as drug dealing or smuggling, are considered void and not enforceable by law.

2. Agreement with a minor:

Agreements made with a minor, someone aged below 18 years old, are considered void as minors are legally incapable of entering into a contract.

3. Agreement made under coercion:

Agreements made under physical or mental duress, also known as coercion, are considered void because they are not entered willingly and freely.

4. Agreement where consideration is impossible:

Agreements with consideration that is impossible to fulfill are considered void. For example, an agreement to sell a house that has already been sold to another buyer.

5. Agreement against public policy:

Agreements that go against public policy, such as agreements to commit a crime, are considered void.

Voidable Contracts:

Unlike void agreements, voidable contracts are initially considered valid, but one or both parties have the option to terminate or rescind the contract due to some legal issue. Some common reasons why a contract might be voidable include:

1. Misrepresentation:

When one party makes a false statement that induces the other party to enter into a contract, the contract is considered voidable.

2. Fraud:

A contract can be voidable if one party intentionally deceives the other to gain an advantage or profit.

3. Undue influence:

If one party uses their power to influence another party to enter into a contract, the contract can be voidable.

4. Mistake:

Contracts entered into due to a mistake, such as an incorrect understanding of terms, can be voidable.

5. Incapacity:

If one party lacks the legal capacity to enter into a contract, such as being mentally incompetent, the contract can be voidable.


In conclusion, contracts and agreements are an essential part of any business transaction. However, not every agreement is legally enforceable. Understanding the different types of void agreements and voidable contracts can protect businesses from entering into invalid contracts and agreements. It is essential to seek legal advice before entering into any significant transaction to ensure that the agreement is legally binding and enforceable.

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