Javatpoint Logo
Javatpoint Logo

Void Contract

Understanding Void Contract

A formal contract that is effectively void and unenforceable from the moment it is created is known as a void contract. A void contract is different from a voidable contract because voidable contracts can become legally enforceable if underlying contractual flaws are fixed. In contrast, void contracts are never legally valid, to begin with, and will never be enforced in the future. Likewise, voidable contracts may also be annulled for the same grounds as void contracts.

Void Contract

When does a contract become Void?

A contract that is governed as Void will no longer be enforceable under federal or state law. A contract may be null and void if:

  • It is unduly skewed one way.
  • It violates government regulations.
  • It deals with illicit material.
  • It cannot be accomplished.
  • It unfairly limits one side's ability to act (such as the right to work).
  • The legal capacity of one of the parties to form a legally binding agreement is lacking.

Furthermore, an agreement can be declared Void if the party entering into it is found to be permanently incapacitated and unable to understand it or its effects. The contract might be enforceable if the party is a minor who has the approval of their parents or legal guardians. When a law changes after a contract is signed but before it is finished, the contract may be ruled Void if the agreed-upon actions that are now against the law.

In such cases, the contract is virtually "invalid on its face". This means that the contract cannot be modified or revised to make it enforceable and void. Under these circumstances, the court would probably strike it down entirely.

Causes of Void/Null Contracts


A contract may be Void under a variety of situations. Legally, a party that lacks capacity cannot consent to a contract. It may be seen when one of the parties to the contract is unconscious or incapable of sound judgment.

The Presence of an Illegal Item or Consideration

If an illegal object or consideration is a part of the agreement, the contract may also be deemed Void. This could be anything from the promise of illicit drugs or sex to anything else that might lead one or both parties to break the law.

Lack of Performance Feasibility

The impossibility of performance is another typical justification for a void contract. It happens when one of the parties can no longer carry out any provision of the contract.

You can understand void contracts better by looking at the legal factors contributing to them. They can occur for a variety of reasons.

Elements of Void Contract

It can be determined what can render a contract void by taking a look at some of the components of a contract, such as:

  • Acceptance of Offer: Every aspect of the contract must be understood by both parties. They must agree to the terms of the contract in their entirety.
  • Intention to Establish Legal Relationships: A promise between the parties is not always the result expected in the contract. Along with the contract itself, it is important to consider the nature of the connections between the parties to the agreement.
  • Taking into account: There must be a value exchange between the parties. A contract is void if one party intentionally profits from it at the expense of the other.
  • Complete: The contract must be comprehensive and detailed to be valid.

How to terminate a contract?

There are some actions you can take if you believe a contract has to be cancelled:

  • Examine the contract to see which provisions or aspects might make it unenforceable.
  • Check if the contract is void (e.g., whether it performs or violates public policy).
  • Begin by gathering proof that the contract is void, such as documents and other evidence.
  • Choose whether to renounce the contract completely or whether a new one needs to be created.
Void Contract

The laws governing contracts and economic transactions vary from state to state. This is due to the possibility of different state laws governing commerce and business transactions. The exchange that was supposed to happen will not result in any benefits for either party if you decide to have a contract declared Void.

Contracts: Voidable and Void

Although "void" and "voidable" are frequently used interchangeably, they refer to different aspects of contracts. Contracts that are voidable but have legal standing can sometimes be enforced. When a contract is voidable, only one party is held to the terms. The contract is voidable if the other party cancels it.

A void contract cannot be enforced at all. The contract is regarded by the law as having never been. The most significant distinction is that while a void contract cannot be lawfully implemented, a voidable contract can. However, the "unbound" party can ask for its cancellation before it is carried out.

Illustrations of Void Contracts

Invalid contracts frequently entail unlawful behaviour like:

  • Prostitution
  • Criminal activity
  • Gambling

Consider a transaction for illegal drug sales between a local dealer and a supplier of drugs. As it pertains to unlawful items, this contract would be null and void. It doesn't fulfil a legal function. Hence it is inherently unenforceable. Another illustration is a contract that limits certain behaviours, like who a person can marry or their ability to earn a living.

A contract may be voidable if one party was duped into signing it or if they were both inebriated or under the influence of drugs or alcohol at the time of the contract.

Before making a verbal or written contract, seek legal advice. You won't need to be concerned about it being void or voidable because he or she can assist in creating a legally enforceable contract.

On UpCounsel's marketplace (growing online legal marketplace), you can post your legal requirement for assistance with a void contract. The top 5% of attorneys are the only ones admitted to UpCounsel. UpCounsel's attorneys have an average of 14 years of legal experience, have worked with or on behalf of businesses like Google, Menlo Ventures, and Airbnb, and are graduates of prestigious law schools like Harvard Law and Yale Law.

Youtube For Videos Join Our Youtube Channel: Join Now


Help Others, Please Share

facebook twitter pinterest

Learn Latest Tutorials


Trending Technologies

B.Tech / MCA