Void And Voidable
Void and voidable
A contract that is "void" cannot be enforced by either party., The law treats a void contract as if it had never been formed. A contract will be considered void, for example, when it requires one party to perform an act that is impossible or illegal.
A "voidable" contract, on the other hand, is a valid contract and can be enforced. Usually only one party is bound to the contract terms in a voidable contract. The unbound party is allowed to cancel the contract, which makes the contract void.
Main difference: void contract cannot be performed under the law, voidable contract can still be performed
Void example:
Contracts involving an illegal subject matter such as gambling, prostitution, or committing a crime.
Contracts entered into by someone not mentally competent (mental illness or minors).
Contracts that require performing something impossible or depends on an impossible event happening.
Contracts that are against public policy because they are too unfair.
Contracts that restrain certain activities (right to choose who to marry, restraining legal proceedings, the right to work for a living, etc.)
Eg Leha Binte Jusoh v Awang Johari Bin Hashim (1978)
Voidable example:
Contracts entered into when one party was a minor. (The law often treats minors as though they do not have the capacity to enter a contract. As a result, a minor can walk away from a contract at any time.)
Contracts where one party was forced or tricked into entering it.
Contracts entered when one party was incapacitated (drunk, insane, delusional).
Voidable if you accept of this 5 part:
Causes by
1. Coercion
2. Undue influence
3. Fraud
4. Mispresentation
5. Mistake
Coercion 强迫 = the form of actual violence or threatened violence to the person
Eg Kanhayya Lal v National Bank of India Ltd (1913) - is limited to an unlawful act done ‘ with the intention of causing the person to enter into an agreement’
Under Influence = when one of the parties to a contract usu his special
A contract that is "void" cannot be enforced by either party., The law treats a void contract as if it had never been formed. A contract will be considered void, for example, when it requires one party to perform an act that is impossible or illegal.
A "voidable" contract, on the other hand, is a valid contract and can be enforced. Usually only one party is bound to the contract terms in a voidable contract. The unbound party is allowed to cancel the contract, which makes the contract void.
Main difference: void contract cannot be performed under the law, voidable contract can still be performed
Void example:
Contracts involving an illegal subject matter such as gambling, prostitution, or committing a crime.
Contracts entered into by someone not mentally competent (mental illness or minors).
Contracts that require performing something impossible or depends on an impossible event happening.
Contracts that are against public policy because they are too unfair.
Contracts that restrain certain activities (right to choose who to marry, restraining legal proceedings, the right to work for a living, etc.)
Eg Leha Binte Jusoh v Awang Johari Bin Hashim (1978)
Voidable example:
Contracts entered into when one party was a minor. (The law often treats minors as though they do not have the capacity to enter a contract. As a result, a minor can walk away from a contract at any time.)
Contracts where one party was forced or tricked into entering it.
Contracts entered when one party was incapacitated (drunk, insane, delusional).
Voidable if you accept of this 5 part:
Causes by
1. Coercion
2. Undue influence
3. Fraud
4. Mispresentation
5. Mistake
Coercion 强迫 = the form of actual violence or threatened violence to the person
Eg Kanhayya Lal v National Bank of India Ltd (1913) - is limited to an unlawful act done ‘ with the intention of causing the person to enter into an agreement’
Under Influence = when one of the parties to a contract usu his special