a void contract is a purported agreement that is unenforceable from the moment it is created 
a void contract differs from a voidable contract while a void contract was never legally valid and will never be enforceable voidable contracts may be valid until one party formally rejects the terms for reasons allowable in the contract or by law voidable contracts may also be legally enforceable once any defects in the contract are corrected that said void and voidable contracts can be nullified for similar reasons 1understanding void contractsa contract can be deemed void if it s not enforceable as originally written in these cases void contracts or void agreements are illegal or against fairness or public policy while a valid contract has all the essential elements required by law a void contract is missing one or more of these or is flawed in some other way making it impossible to enforce enforceable contracts must meet certain criteria first there has to be a clear offer from one party and an acceptance of it by another second there must be what s called consideration something of value must be exchanged between the parties third the contract must have some legal purpose fourth the contract s terms must be clear certain and possible to perform next the parties must also have the legal capacity to enter into contracts they are of sound mind not under the influence of drugs or alcohol and of legal age lastly some contracts must be in writing to be enforceable depending on the jurisdiction especially for major transactions like selling real estate given this background here are some instances when a contract would be void in a financial or business situation understanding the meaning of void contracts is crucial to confirming that agreements are legally sound which can help mitigate the risks of unenforceable contracts voidable contract vs void contractwhile a void contract is usually considered not enforceable at its inception a contract may be voidable if the contract s circumstances are questionable examples of voidable contracts include when one party is allowed to cancel the contract because of the other party s illegal or unfair voidable actions this includes agreements where one party withheld information or intentionally provided inaccurate information laws for certain types of contracts require disclosing specific kinds of information if this is not done if the seller of a house fails to tell you about the sinkhole set to devour the home at any moment the contract could be voidable but not automatically void since both parties might wish for the agreement to go forward 1for instance if a contract is entered into with a minor the minor has the legal right to void the contract until reaching the age of majority even if the terms bind the other party in this case the agreement in some jurisdictions might be valid until the minor decides to void it making it a voidable but not void contract thus in a voidable contract the party subject to duress fraud undue influence or other such factors can choose to enforce or void the contract voidable contracts have this key element the choice or escape route for the party subjected to one of the elements above can a void contract become valid if it s corrected no a void contract can t be made valid merely by mutual agreement to correct the problems that made it void in the first place once a contract is deemed void it s like it never existed as a matter of law 