What Is the Difference between a Void Contract and an Unenforceable Contract

Contracts are agreements between parties that outline the terms and conditions of a particular transaction or relationship. However, not all contracts are created equal. Some contracts may be void, while others may be unenforceable. Although these terms may seem interchangeable, they have distinct differences.

Void Contracts

Void contracts are agreements that are not legally binding or enforceable. Essentially, a void contract is considered invalid from the moment it is created. This may be due to a variety of reasons, such as:

1. Illegality: A contract that requires illegal activity or violates public policy is considered void. For example, a contract for the sale of illegal drugs would be void.

2. Lack of capacity: If one or both parties lack the mental or legal capacity to enter into a contract, the agreement is considered void. For instance, a contract signed by a minor may be void.

3. Mistake: If both parties are mistaken about a fundamental aspect of the contract, such as the price or subject matter, the contract may be void.

4. Unconscionability: If the terms of the contract are so unfair that they shock the conscience, the contract may be void.

Unenforceable Contracts

On the other hand, an unenforceable contract is one that is considered valid, but for some reason, cannot be enforced in court. This means that if one party breaches the contract, the other party cannot go to court to seek a remedy. Common reasons why a contract may be unenforceable include:

1. Statute of frauds: In some cases, certain contracts must be in writing to be enforced, such as contracts for the sale of real estate or goods over a certain value.

2. Lack of consideration: If one party does not receive anything of value in exchange for their promise, the contract may be unenforceable.

3. Undue influence: If one party exerts undue influence over the other in a way that affects their ability to freely enter into the contract, the agreement may be unenforceable.

4. Fraud: If one party knowingly misrepresents information, such as the quality of goods or services, the contract may be unenforceable.

Conclusion

In summary, the main difference between a void contract and an unenforceable contract is that a void contract is completely invalid from the outset, while an unenforceable contract is considered valid, but cannot be enforced due to some legal obstacle. As a professional, it is important to understand the distinction between these two terms to ensure clear and accurate communication in legal writing.