Big Bird Balls

Void Contract

A contract that has no legal effect from the start; it is as if it never existed.

Voidable Contract

A valid contract that can be legally canceled (rescinded) by one of the parties.

Enforceability of a Void Contract

Cannot be enforced by either party because it violates the law or public policy.

Enforceability of a Voidable Contract

Can be enforced unless the injured party chooses to cancel it.

Effect of Void Contract

Automatically invalid — no rights or obligations arise.

Effect of Voidable Contract

Remains valid until the injured party voids it.

Illegal Subject Matter

Makes a contract void because it violates the law (e.g., contract to sell drugs or bribe officials).

Public Policy Violation

Contracts restraining marriage, obstructing justice, or interfering with custody are void.

Physical Duress

A contract signed under threat of physical harm is void because consent is absent.

Fraud in the Execution

Contract is void because the signer was deceived about what they were signing.

Lack of Legal Capacity (Declared Insane)

A contract made by someone legally adjudicated insane is void.

Impossibility from the Start

A contract is void if performance was impossible when made (e.g., selling a building that already burned down).

Duress by Threat

Contract is voidable if one party is pressured by improper threats (e.g., economic harm).

Undue Influence

Contract is voidable when one party unfairly dominates or exploits a trusting relationship (e.g., caretaker and elderly person).

Fraud in the Inducement

Contract is voidable when one party lies about an important fact to induce agreement.

Misrepresentation (Innocent or Negligent)

Contract is voidable if false information causes reliance, even if not intentional.

Minor’s Contract

Voidable at the option of the minor, except for necessities like food, housing, or education.

Mental Incompetence (Not Adjudicated)

Voidable if the person lacked understanding at the time but was not declared insane by court.

Intoxication

Voidable if the intoxicated person could not understand and the other party knew; otherwise valid.

Unconscionability

Contract may be void or voidable if it is grossly unfair or oppressive.

Key Rule - Illegal = Void

A contract that violates law or public policy is automatically void.

Key Rule - No Real Assent = Voidable

Contracts made under fraud, duress, mistake, or undue influence are voidable by the victim.

Key Rule - Missing Legal Requirement = Unenforceable

Contracts missing writing, consideration, or other formalities are valid but unenforceable in court.

Void = “Vicious Violation of Law”

Mnemonic reminder — illegal or impossible contracts are void.

Voidable = “Voluntary Victim’s Choice”

Mnemonic reminder — contracts are valid until the victim rescinds them.

Real Example - Hiring a Hitman

Void, because it involves an illegal act.

Real Example - Minor Buys a Car

Voidable, because minors can disaffirm contracts.

Real Example - Threatening with a Gun to Sign

Void, because physical duress removes consent.

Real Example - Parent Pressures Child to Transfer Property

Voidable, due to undue influence.

Real Example - Contract to Sell Stolen Goods

Void, because it involves illegality.

Real Example - False Claim About Car Mileage

Voidable, due to fraud in inducement.

Real Example - Legally Insane Person Signs Contract

Void, because no capacity to contract.

Real Example - Slightly Intoxicated but Aware Signer

Valid, because they still understood.

Summary of Void Contracts

Always illegal, impossible, or lack capacity — no legal effect.

Summary of Voidable Contracts

Legally valid but can be canceled due to unfair formation or lack of real consent.