Difference between void contracts and voidable contracts Assignment

Difference between void contracts and voidable contracts - Assignment Example Voidable contract is a form of valid contract where all the four essential elements of a contract are present. According to Cross and Miller (2011, p. 752), a voidable contract is a contract which might be â€Å"legally avoided (canceled, or annulled) at the option of one of the parties.† In more generalized sense, the party/parties having the option to avoid the contract can avoid the contract altogether. Otherwise, they can also select which contractual duty is to be avoided. However, there is a process of ratification. If the contract is ratified by the contracting parties, then even a voidable contract will become strictly enforceable. Firstly, void contracts are itself a category of contracts. But voidable contracts are a subcategory of valid contracts. Secondly, void contracts are no contracts at all. However, voidable contracts are strictly enforceable contracts once they are ratified by the contracting parties. Thirdly, a void contract can never have all the four essential contractual elements in it. For example, if the element of consideration be missing in a contract, then that contract can be deemed as a void contract. However, this is not the case with voidable contracts. A voidable contract has all the four essential contractual elements in it 1. Suppose, A and B sign a contract on dealership of cannabis. However, selling or buying cannabis is banned in the US. So this kind of contract is a void contract since it violates law. (Schaffer, Agusti, and Earle 2008) 2. Suppose, A and B sign a contract to build a resort on an island in an active delta area. After a few days, there is a flood and the island is completely submerged under sea. Then, the contract between A and B will become void since the object of the contract cannot be achieved