(Three Minutes Read)

There are certain contractual terms that requires closer scrutiny, when used in contracts. Most times these terms are not used in a contract but are used to qualify a contract.

The validity or enforceability of your contract might depend on it. As a business owner or startup it is wise to understand what sort of contractual dealings may lead to the use of these terms.

These terms are

1. Void Contract

These sorts of contract once entered into have no legal effect. A void contract is no contract at all. Once a contract is declared as void, Toh! It Simply means that it is not worth the paper it is written upon. A void contract confers no right to either party at law.

Examples
a. Contracts lacking the basic elements of a contract
b. Contract expressly declared voidby statute.

2. Voidable Contract

This is a contract that is valid at law but which may be brought to an end at the option of the other party. This other party has the power of election, of whether or not to treat the contract as binding or void.

Example:
Certain contracts made by infants under the law are treated as voidable contracts.

3. Unenforceable Contract

This sorts of contract is valid at law, but it's just that it cannot be enforced due to some fatal defects in it. Such as failure to follow an express provision of the law

Example
Contracts that are against the the limitation Act; if an Act stipulated that you can enforce your right once brrached within 2 years of your knowledge( or a time areasonable man ouught to be aware) of the breach but you sued outside of that period it may be declared unenforceble, although you have a valid ground to sue.

4. Illegal Contract

An illegal contract is void. Any contract arising from it, in which the parties have or ought to have knowledge of the illegality of the original contract, is void.

Example
A contract expressly barred or forbidden by a valid statute or Law.



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