Purchase Solution

Void and voidable contracts

Not what you're looking for?

Ask Custom Question

What are the differences between a void contract and a voidable contract? Provide examples.

Which party or parties to a voidable contract have the right to disaffirm the contract? Can written agreements be modified orally? Explain why or why not.

Purchase this Solution

Solution Summary

The solution differentiates void from voidable contract. It also argued that oral agreements between parties are enforceable.

Solution Preview

There are a misconception regarding void and voidable contracts. Some do not even see the differences between the legal terms. This posting clears up this issue.

A void contract is one which has no legal effect whatsoever owing to the fact that a transaction which is void is without any legal effect; it is a misuse of terms to call transaction a void contract. It may be called accurately a void transaction or a void agreement (Rahman, 2006).

Rahman (2006) stated this example: "A storekeeper agrees to purchase stolen goods. The thief has no recourse at law because the agreement to purchase the goods was void as it assisted a thief to get the benefit or his crime".

"If a contract can be rejected by one of the parties on legal grounds, it is called a voidable contract. A voidable contract is valid and binding unless the entitled party (the party who has legal grounds to reject the contract) voids it. A defect exists. The defect may be cured by ratification of the entitled party" (Contract Law, n.d.).

StasoSphere (2009) gives an example of a voidable contract: "A agrees to sell a $5,000 automobile to B, a minor (not yet 21 years of age). A is bound to furnish the automobile and cannot plead that B was not of age; B may refuse ...

Purchase this Solution

Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.