In short
A void contract has no legal effect, such as one for an illegal purpose. A voidable contract is valid, but one party can choose to cancel it, for example because of being a minor, fraud, duress or undue influence.
Key takeaways
- A minor can disaffirm a contract during minority and for a reasonable time after, but is liable for the reasonable value of necessaries.
- A voidable contract can be ratified, after which it can't be cancelled.
- An unenforceable contract, such as one that violates the statute of frauds, is valid but can't be enforced in court.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A 16-year-old signs a contract to buy a car. What is the legal status of the contract?