Void, Voidable, and Unenforceable

Not all contracts are created equal. You must know the status of the paper you are holding.1. Void Contract (The "Dead on Arrival")This is not a contract at all. It lacks one of the essential legal elements.Example: A contract to do something illegal (e.g., "I will pay you $10k to burn down my neighbor's shed"). It has no legal effect. You cannot enforce it.2. Voidable Contract This contract appears valid on the surface, but one party has the right to back out (rescind) because of a defect.Example:Minors: You sign a contract with a 17-year-old. The contract is voidable by the minor. They can choose to honor it or walk away. You (the adult) are stuck.Duress: You put a gun to the seller's head to make them sign.Fraud: You lied about the roof leaking.Voidable Contract means it is valid unless the injured party chooses to kill it.