Contract Law

The term "void contract" is an oxymoron--a contract held to be void does not exist under law. In other words, although two parties may have come to an agreement, it is not recognized as a legal contract. Perhaps the simplest example of a void contract is a contract formed in which one party agrees to perform an illegal act. A contract that is illegal in part may be void in that respect, however, it is still a valid contract if the deletion of the illegal portion of the contract does not defeat the purpose of the broader agreement. Agreements in which an essential feature of a valid contract is lacking, are void contracts as well. Voidable contracts are contracts that may be canceled by one of the two parties involved. A contract may be voidable for various reasons, but in most cases a voidable contract provides for one of the parties to withdraw from the agreement without penalty.