what is void and voidable contract?discuss the basic element of a valid contract?
Answers
The contract is said to be void when one party is required to perform an act
that is impossible or illegal.
On the other hand a voidable contract, is said to be a valid contract and can be enforced. Only one party is usually bound to the contract terms in a voidable contract.
The basic elements of a valid contract include the following:
(1) offer : An offer is a two way promise to act or refrain from acting, made in exchange for the same thing in return.
(2) acceptance : Acceptance must generally be made in the manner specified by the offer.
(3) consideration : Each party is liable to provide something of value that persuades the other to enter the agreement.
(4) mutuality of obligation : Both parties must be bound to perform their obligations or the law will treat the agreement as if neither party is bound to perform.
(5) competency and capacity: The person entering a contract possesses complete legal capacity to be held liable for the duties is entitled to undertake, unless the person is a minor, mentally unstable, or intoxicated.
(6) a written instrument.
A void contract is deemed to be enforced by law and none of the parties dealing with that contract can act according to that contract anymore.
On the other hand, a voidable contract is recognized as legally valid and both parties can act according to the terms mentioned on that signed contract paper.
The main elements of a valid or voidable contract are the offer or the agreement stated in the contract, acceptance of the contract by both parties, requirement of creating this legal contract, terms and conditions to be followed by all, also the eligibility of the people entering into this legal contract.