The Indian Contract Act 1872
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contracts with S to whitewash S’s house for Rs 1000 within a week, but R fails to do so within the prescribed time. In this case, the contract becomes voidable at the option of S.
When does a voidable contract become a void contract?
A voidable contract becomes void when the party entitled to repudiate such a contract exercises his option to repudiate the contract. Suppose A forces B to sell his house to him for Rs 10,000 at knife point, in this case, the contract is voidable and it can be repudiated or avoided by B. If B decides to rescind or avoid the voidable contract, the contract becomes void.
Differences between void contract and voidable contract
1. A void contract is not enforceable at law at the instance of either party. But a voidable contract is enforceable at the option of the aggrieved party. 2. A third party gets no right to a thing transferred by a person claiming the same under a void contract. On the other hand, a third party acquires good title to a thing transferred by a person claiming the same under a voidable contract provided the transfer takes place before the contract is voided.
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Valid contract
A valid contract is an agreement enforceable by law. An agreement becomes enforceable by law only when it satisfies all the essential elements of a contract as contained in Section 10 of the Indian Contract Act. So, a valid contract is an agreement which satisfies all the essentials of a contract, as contained in Section 10 of the Indian Contract Act. For example, if A offers to sell his house to B for Rs 10 lakhs and B accepts the same, there is a valid contract. The legal rights conferred and the legal obligations imposed by a valid contract are enforceable by law against each other.