Law

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Ganesh Lamichhane

Ganesh Lamichhane (Querist)

15 September 2014 how to distinguish between void agreement and void contract?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now