Difference between void agreement and voidable contract


Basis of difference

Void agreement

Voidable contract

Void ab-intio

It is void from the very beginning

It is valid when made and continues to remain valid till it is repudiated by the aggrieved party.

Which essential element of contract is missing

It is void because an essential element of a valid contract is missing

It is voidable because the consent of a party is not free.


It cannot be enforced by any party

It continues to be enforceable if the aggrieved party does not repudiate the contract.

Right of third party

Third party does not acquire any rights.

A third party who purchases goods in good faith and for consideration before the contract is repudiated acquires good title of those goods.

Effect of lapse of reasonable time

Even on the expiry of a reasonable time, it can never become a valid contract.

On the expiry of reasonable time, it may be come a valid contract, if the aggrieved party does not repudiate the contract within reasonable time.


The question of damages does not arise.

The aggrieved party can claim damages.

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