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CMR UNIVERSITY
VOIDABLE CONTRACT
CMR SCHOOL OF LEGAL STUDIES
LL.B - CONTRACT ACT 1872
SUBMITTED BY:
HITESH KUMAR
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TABLE OF CONTENT
1. Abstract
2. Introduction
3. Definition and meaning
4. Voidable contract
5. Example
6. Differences between a void and a voidable contract.
7. Case law
8. Conclusion
9. Bibliography
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Abstract
Voidable contracts may end up being determined as unenforceable. There’s any number of
legal reasons why this may end up being the case in the eyes of the court; typically, it comes
down to the terms and conditions that were laid out in the contract or to protect one of the
parties from any unfairness in the negotiation process.
While a voidable contract is typically considered legal and enforceable from the outset, it
may end up being rejected if it is ultimately found to be defective.
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INTRODUCTION
A voidable contract is one that can be affirmed or rejected at the option of one of the par-
ties. Voidable contract is one that is void as to the wrongdoer but not void as to the party
wronged, unless that party elects to treat it as void. A voidable contract is a contract which
is valid and capable of producing the results of a valid contract, but which may be avoided.
The Indian Contract Act, 1872.1 Free Consent:- 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.
A contract made by a minor is often voidable, but a minor can only avoid a contract during
his or her minority status and for a reasonable time after he reaches the age of majority. Af-
ter a reasonable period of time, the contract is deemed to be ratified and cannot be avoided
Other examples would be real estate contracts, lawyer contracts, etc. Typical grounds for a
contract being voidable include able, but a minor can only avoid a contract during his or
her minority status and for a reasonable time after he reaches the age of majority. After y, it
is considered a voidable contract. The definition of the act states that a voidable contract is
enforceable by law at the option of one or more parties but not at option of the other par-
ties. A voidable contract may be considered valid if it is not cancelled by the aggrieved party
within a reasonable time.
KEYWORDS: VOID CONTRACT, CONTRACT, BOUND, VOID , MINOR
1 the Indian contract act 1872.
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DEFINITION AND MEANING
Voidable Contract
voidable is a term typically used with respect to a contract that is-valid
A contract may be voidable on the grounds of Fraud,mistake,Misrepresentation, lack of
capacity, duress, , or abuse of a fiduciary relationship. A contract that is based on one o
f these grounds is not automatically void but is voidable at the option of the party enti-
tled to avoid it.
Section 2(i) of the Indian Contract Act 1872 defines a voidable contract. According to Sec-
tion 2(i) of the Indian Contract Act 1872, "voidable contract is an agreement, which is en-
forceable by law at the option of one or more parties thereto, but not at the option of the
other or others, the contract is said to be voidable
Example:
When consent to an agreement is caused by coercion, fraud, misrepresentation the agree-
ment is voidable at the option of the party whose consent was so caused.
A contract may be voidable on the groundsfff
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VOIDABLE CONTRACT
The section 2(j) of the Act defines a void contract as “A contract which ceases to be
enforceable by law becomes void when it ceases to be enforceable”.These types of
Contracts are defined in section 2(i) of the Act: “An agreement which is enforceable
by law at the option of one or more of the parties thereto, but not at the option of the
other or others, is a voidable contract.” This may seem difficult to wrap your head
around but consider the following example:Suppose a person A agrees to pay a sum
of Rs. 10,0000 to a person B for an antique chair. This contract would be valid, the
only problem is that person B is a minor and can’t legally enter a CONTRACT.So
this contract is a valid contract from the point of view of A and a “voidable” contract
from the point of view of B. As and when B becomes a major, he may or may
not agree to the terms. Thus this is a voidable contract.A voidable contract is a Valid
Contract. In a voidable contract, at least one of the parties has to be bound to the
terms of the contract. For example, person A in the above example.The other party is
not bound and may choose to repudiate or accept the terms of the contract. If they so
choose to repudiate the contract, the contract becomes void. Otherwise, a voidable
contract is a valid contract.al Contract
Illegal Contract
An agreement that leads to one or all the parties breaking a law or not conforming to the
norms of the society is deemed to be illegal by the court. A contract opposed to public policy
is also illegal Several examples may be cited to illustrate an illegal contract.
For example, A agrees to sell narcotics to B. Although this contract has all the essential ele-
ments of a valid contract, it is still illegal.The illegal contracts are deemed as void and not
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enforceable by law. As section 2(g) of the Act states:“An agreement not enforceable by law
is said to be void.”Thus we can say that all illegal contracts are void but the reverse is not
true. Both the void contracts and illegal contracts can’t be enforceable by law. Illegal con-
tracts are actually void ab initio (from the start or the beginning).Also because of the crimi-
nal aspects of the illegal contracts, they are punishable under law. All the parties that are
found to have agreed on an illegal promise are prosecuted in a court of law.
Unenforceable Contract
Unenforceable contracts are rendered unenforceable by law due to some technical. The con-
tract can’t be enforced against any of the two parties.
For example, A agrees to sell to B 100kgs of rice for 10,000/-. But there was a huge flood in
the states and all the rice crops were destroyed. Now, this contract is unenforceable and can
not be enforced against either party.
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Differences between a void and a voidable contract.
Void Contract Voidable Contract
“An agreement which is enforce-
“A contract which ceases to be en- able by law at the option of one or
forceable by law becomes void more of the parties thereto, but not
when it ceases to be enforceable”. at the option of the other or others,
is a voidable contract.”
A contract becomes void if either it A contract becomes a voidable
lacks the essential elements, the contract when at least one of the
law changes drastically or the parties reserves its consent or the
terms of the contract change such consent of one of the parties was
that it is no longer possible to en- not free at the time of the formation
force the contract in a court of law. of the contract.
The validity and enforceability of
the voidable contract depend on
the choice of the unbound party. If
Void contracts can’t be fulfilled.
the unbound party decides to re-
pudiate the contract it becomes
void.
This type of contract can’t grant The right to rescind a voidable con-
any rights or considerations to any tract is retained by the unbound
of the involved parties. party.
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CASE LAW
Muralidhar Chatterjee V. International Film Co. LTD
enforceable by law at the option of one or more of the parties thereto, but not at the option
of the other or others, is a voidable contract; (j) A contract which ceases to be enforceable
by law becomes void...performing his promise, the contract becomes voidable at the option
of the party so prevented; and he is entitled to compensation from the other party for any
loss which he may sustain in consequence...execute the work accordingly, but A prevents
him from doing so. The contract is voidable at the option of B; and, if he elects to rescind it,
he is entitled to recover from A compensation for any loss…
Vemulpaalli Ramakotayya V. Gutha Viraraghavayya
based on is this. An alienation by a widow is not a void contract, it is only voidable—Bijoy
Gopal Makerji v. Krishna Mahishi Debi. Now in all cases of voidable contracts, there is a...a
widow is not a void but only a voidable contract, and that it can be affirmed expressly or
impliedly by conduct of those whose interest it is to have it avoided. It has been argued that
their...Lordships meant to confine the class of persons who could validate the voidable con-
tract to a reversioner who had not merely a spes successionis but had become in titulo to
reduce the estate into possession...
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CONCLUSION
There are many contracts which are valid, but sometimes due to certain circumstances, they
cease to be enforceable which makes them a void contract because it is impossible that the
contract is to be further executed. Similarly, many people unlawfully induce or persuade
the will of another person to enter into a contract, which becomes voidable at the option of
the party whose consent was so induced. To secure the performance and enforceability of a
contract , the contract should be a valid contract . As the void contracts can’t be enforced.
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Bibliography
1. ’The Choice of Remedy for Breach of Contract', Journal of Legal Studies, 14, 299.
2. 'New Notes on the Old Oats', Solicitors Journal, 131,384’
3. When is a Condition not a Condition?', Journal of Business Law,
