Difference between Illegal and Void Contract

For most business owners and individuals, entering into a contract is a routine exercise. Contracts are legally binding documents that are designed to protect the interests of all parties involved. However, not all contracts are created equal. Some are illegal, while others are void. It is important to understand the difference between these two types of contracts to avoid any legal issues that could arise in the future.

An illegal contract is one that is against the law from its inception. These contracts are considered null and void from the beginning, and they cannot be enforced by any court of law. Examples of illegal contracts include contracts that involve illegal activities such as drug trafficking, gambling, or prostitution.

On the other hand, a void contract is one that is valid at the time it is formed, but it becomes unenforceable at a later date due to certain circumstances. There are several reasons why a contract may be voided. For instance, a contract may be voided if one of the parties was not of sound mind at the time the contract was signed. Similarly, if one or both parties were coerced into signing the contract, it may be considered void.

Another reason why a contract may be considered void is if it violates public policy. This includes contracts that involve discrimination based on race, gender, or religion. Contracts that are overly restrictive or overly broad may also be considered void if they limit an individual`s freedom or rights.

It is important to note that a contract that is illegal or void cannot be enforced by any court of law. It is, therefore, crucial to ensure that any contracts you enter into are legal and enforceable. To do this, it is recommended that you seek the services of a legal professional who can provide expert advice on the legality of any contract you intend to sign.

In conclusion, understanding the difference between illegal and void contracts is crucial when entering into any business or personal agreement. An illegal contract is against the law and is not enforceable, while a void contract is valid at the time of formation but becomes unenforceable later on due to certain circumstances. It is advisable to seek legal advice when entering into any contract to avoid any legal issues that might arise in the future.


Popular Posts

  • Service Level Agreement Monitoring and Reporting Template

    As businesses strive to maintain optimal performance, it is essential to have a reliable service level agreement (SLA) monitoring and reporting template. This template is essential for tracking the performance of a company`s service providers against the agreed-upon service level agreements. In this article, we will discuss the importance of an SLA monitoring and reporting…

  • Contract Agreement Signature Page

    A contract agreement signature page is a crucial aspect of any legally binding document. This page is usually the last page of a contract and contains the signatures of all parties involved in the agreement. The signature page is designed to ensure that all parties understand and agree to the terms of the contract. It…

  • Lease Agreement Il

    When it comes to leasing a property, having a thorough and well-written lease agreement is crucial for both the landlord and tenant. A lease agreement serves as a legal contract between the two parties outlining the terms and conditions of the lease. In Illinois, lease agreements are governed by state laws and should adhere to…



There’s no content to show here yet.