The difference between void and illegal contracts is subtle, but important in 1872, the indian contract act defined the line between void and illegal agreements 3 min read the difference between void and illegal contracts is subtle, but important in 1872, the indian contract act defined the line.
So the contract is non-existent in the first place in the eyes of the law a contract between two minors is a void contract because the two parties are underaged and don’t have legal capacity (but see below: it could be a voidable contract too) a contract for drug trafficking is both a void and an illegal contract because it’s against the law. Void and illegal contracts void contracts void contracts are basically those which contravene a provision in a statute or are contrary to public policy at common law but to which the ex turpi causa principle does not apply.
Despite the similarity between an illegal and a void agreement that in either case the agreement is void ob-initio and cannot be enforced by law, the two differ from each other in the following two respects: (i) an illegal agreement is narrower in scope than a void agreement.
The major differences between void contract and voidable contract are as under: a contract which lacks enforceability is void contract a contract which lacks the free will of one of the parties to the contract is known as voidable contract void contract is defined in section 2 (j) while voidable contract is defined in section 2 (i) of the indian contract act, 1872. Difference between void agreement and void contract 1) duration of void agreement and void contract the duration under which a void agreement and void contract are enforceable by the law outlines one of the significant difference between the two forms of relationship between parties.
• the primary distinction between a void and voidable contract is that the former is illegal and invalid from its creation while the latter is a legal contract but may become invalid if one party opts to cancel or revoke the contract. A contract that is inherently illegal is void it contracts for something illegal, like murdering someone or prostitution where that is illegal a contract that has a legal defect and does not meet the requirements for a basic contract is voidable. A “void” contract must been distinguished from one which is “illegal” (in the sense that it is either prohibited by law otherwise against the policy of law sec23 seq) both contracts are unenforceable at law the difference between the two, however, becomes clear when the legal effect of such contracts on collateral transactions is considered the rule of law is that no contract which is designed to assist or promote and illegal transaction will be enforced at law.
Difference between void and illegal contracts illegal contractual terms and restraints of trade in contracts when dealing with contract law, many problems can arise there can be illegal terms in the contract or it can just be void there are restraints on trade which include limiting employees from competing against their employers post employment and so on. The difference between void and illegal agreement can be drawn clearly on the following grounds: an agreement which loses its legal status is a void agreement an illegal agreement is one which is not permissible under law.
The main difference between a void contract and an illegal contractis that a void contract is no longer valid it's lost itsauthenticity an illegal contract is a contract tha t is not legalin the name of law therefore, it is not relevant.