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Ganesh Lamichhane

Ganesh Lamichhane (Querist)
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15 September 2014 how to distinguish between void agreement and void contract?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 September 2014 Difference is same which is between an Agreement and a Contract. Rest same.

Voidable Contract :

1. A voidable contract is a valid contract till it is rejected.

2. A voidable contract is not void ab-initio and its defects can be removed.

3. In a voidable contract a third party who buys goods in good faith and for consideration before the contract is rejected, acquires rights.

4. In a voidable contract, a person is entitled to compensation for loss arising due to non performance of the contract.

5. A collateral agreement to a voidable contract is not a void contract.

6. It may become a valid contract if the aggrieved party does not reject it within a reasonable time.

7. It is voidable because the consent of a party is not free.