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. |
Enforceability | 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. |
Damage | The question of damages does not arise. | The aggrieved party can claim damages. |