In such cases, void contracts (also called void agreements) involve agreements that are illegal in nature or that violate equity or public policy. A contract that is considered void cannot be executed by either party. The contract has become unenforceable. Under the law, void contracts are treated as if they were never formed.
An example of when a contract will be considered void would be if the contract requires one of the parties to perform an act that is impossible or illegal. The terms “void” and “voidable contracts” are often used interchangeably, but they are of a completely different nature. While a void contract is completely unenforceable by law, a voidable contract is a valid agreement. However, the terms of a voidable contract provide one or both parties signing the contract with the ability to cancel the contract at any time.
With a void contract, the contract cannot be valid if both parties agree, since you can't commit to doing something illegal. This problem, or defect, means that the contract may not be enforceable by one of the parties (or sometimes by neither party). There are no damages available for breach of a void contract due to the fact, essentially, that there was no contract to break. The fraudulent misrepresentation must have been made by the other party to the contract or, if it is by a third party, known to the other party to the contract.
If you need help drafting a legally enforceable contract or need to know if an existing one could be void or voidable, you should talk to a Washington DC business law attorney as soon as possible. In this case, neither party can enforce a void contract, since it is considered that the contract never existed. Contracts can be considered null and void for a number of reasons, usually because one or more of the elements discussed above are missing. A voidable contract is a contract where there is a problem with the way the contract was entered into.
An example of a voidable contract would be a contract entered into by a minor, as mentioned above. If the circumstance affects an obligation that is only part of the contract, the rest of the contract will continue to be effective and enforceable. Where a party has entered into a contract or obligation on the basis of fraudulent misrepresentation, it will be voidable. Due to the fact that Bob was incompetent at the time the contract was agreed, this is a void contract.
Signing a contract that later becomes null and void can have unintended consequences, costing you time and money. This may include one of the people entering into the contract while incapacitated or unable to make a proper judgment.