mercentile law
This query is : Resolved
02 June 2010
what is the difference between voidable and viod contract ? with examples thankyou
02 June 2010
A contract is void if it looses its enforcibility in the eyes of law. However voidable contract is void at the option of the other party.There is an important distinction between "void"and "voidable" contracts.
A contract is void when the law declares it to be so absolutely - there is no contract whatever and no change in the legal position of the parties; it cannot be ratified. A voidable contract, on the other hand, binds one party but not the other; it is valid until it is avoided by the party entitled to avoid it (refuse to do his part). Until thus disaffirmed it is binding. It may be ratified. Thus, A agrees to sell a 15,000 bike to B, a minor (not yet 18 years of age). A is bound to furnish the bike and cannot plead that B was not of age; B may refuse to take the bike, in which case A is helpless; B may ratify after becoming of age - that is, agree to fulfill his part of the contract he had entered into when a minor. As we shall see later, a minor is bound to pay for necessaries, but even then only a reasonable price.
A contract is void when the law declares it to be so absolutely - there is no contract whatever and no change in the legal position of the parties; it cannot be ratified. A voidable contract, on the other hand, binds one party but not the other; it is valid until it is avoided by the party entitled to avoid it (refuse to do his part). Until thus disaffirmed it is binding. It may be ratified. Thus, A agrees to sell a 15,000 bike to B, a minor (not yet 18 years of age). A is bound to furnish the bike and cannot plead that B was not of age; B may refuse to take the bike, in which case A is helpless; B may ratify after becoming of age - that is, agree to fulfill his part of the contract he had entered into when a minor. As we shall see later, a minor is bound to pay for necessaries, but even then only a reasonable price.
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