Business Studies, asked by chaudhary1000, 1 year ago

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Answered by SolomonRanglong
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A void contract cannot be enforced by law. An agreement to carry out an illegal act is an example of a void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract.

A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at the option of one of the parties. At most, one party to the contract is bound. The unbound party may repudiate (reject) the contract, at which time the contract becomes void.

Basic elements of a valid contract are.

Offer and Acceptance. Basically, a contract unfolds when an offer by one party is accepted by the other party .

Intention to Create Legal Relationship.

Capacity to Contract.

Genuine and Free Consent.

Lawful Object.

Lawful Consideration.

Certainty and Possibility of Performance.

Legal Formalities.
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