Contracts are an integral part of any business or personal agreement, and they can come in several types. While some contracts are legally binding and enforceable in court, others are not. Two concepts that are often used interchangeably but mean different things are voidable and illegal contracts. It is essential to understand the difference between the two to avoid legal implications that may arise from a misunderstanding of these terms.
Voidable contracts are legal agreements that may be canceled or voided by one or both parties involved in the contract. Voidable contracts are only partially enforceable because they have certain elements that make them susceptible to being legally invalidated. Some examples of voidable contracts include agreements made under duress, undue influence, or fraud.
Duress is any conduct that compels another person to enter into an agreement under the threat of harm. Undue influence occurs when one party exerts excessive pressure or control over another, making them sign the contract. Fraud is when one party knowingly makes a false statement or conceals essential facts to induce the other party into signing the agreement.
If a contract is voidable, the party that wants to cancel the agreement must do so within a specific period to avoid being bound by the terms of the contract. Once a contract is canceled, it ceases to be legally binding, and the parties involved are no longer obligated to fulfill their contractual obligations.
Illegal contracts are those that are against the law. They are agreements that involve illegal activities or actions that violate public policy. They are unenforceable because the law does not recognize them. Examples of illegal contracts include contracts for the sale of illegal drugs, contracts involving prostitution, or contracts that involve a criminal enterprise.
Illegal contracts are considered void from the outset. This means that they have no legal standing, and the parties involved cannot be forced to fulfill the terms of the agreement. Any money or assets exchanged under an illegal contract cannot be recovered from either party.
In summary, the difference between voidable and illegal contracts lies in their legality under the law. Voidable contracts are legal agreements that may be canceled or voided by one or both parties involved due to specific reasons such as fraud, duress, and undue influence, while illegal contracts are those that involve illegal activities or actions that violate public policy. It is essential to understand the difference between these two concepts to avoid legal issues that may arise from entering into such agreements. As a professional, it is crucial to use appropriate keywords and phrases to optimize the article for search engines` highest visibility.