Void / voidable
National Real Estate Exam glossary · Contracts
Definition
A void contract has no legal effect from the outset—it never formed, as where the object is illegal. A voidable contract is valid and enforceable unless and until the protected party elects to disaffirm it—as with a contract entered by a minor or induced by fraud. The crucial difference is that a voidable contract can be ratified and enforced; a void one cannot.
Void / voidable in plain English
These two words describe how 'broken' a contract is. A void contract was never real to begin with — like an agreement to do something illegal, it has zero legal power and nobody can enforce it. A voidable contract IS real and enforceable, but one protected person has the right to cancel it if they want — for example, a minor (someone under 18) or someone who was tricked by a lie can walk away, OR choose to keep it. The key difference: a voidable contract can be kept alive and enforced if the protected person agrees to it, but a void one is dead no matter what anyone does.
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