Void agreement and void contract are two terms that are often used interchangeably. However, they are not the same thing. While both void agreement and void contract lack legal force, there are important differences between them.
A void agreement is one that is deemed to be void ab initio, or from the beginning. This means that the agreement was never valid, to begin with, and therefore cannot be enforced by either party. Examples of void agreements include those that are made under duress, coercion, or fraud, or involve illegal activities.
On the other hand, a void contract is one that was once valid but has become void due to some defect. This could be due to a breach of contract, a mistake, or an illegal clause or provision. Unlike a void agreement, a void contract can be enforced but only up to the point where it became void.
For instance, if a contract was made for the delivery of goods, but the goods are not delivered due to an unforeseen event such as a natural disaster, the contract becomes void. In such a scenario, the seller may not be held liable for non-delivery, and the buyer cannot demand the delivery of goods.
It is essential to understand the difference between a void agreement and a void contract to avoid confusion and ensure that you act according to the law. In case of a dispute between the parties to an agreement or contract, it is crucial to determine whether it was void ab initio or voidable due to some defect.
In conclusion, to summarize the main points of this article, it is crucial to note that while void agreement and void contract seem to be the same, they are not. The main difference is that a void agreement never had any legal force while a void contract had legal force and became void due to some defect. Understanding the difference between the two can help you avoid legal issues and navigate contracts and agreements efficiently.