Void agreement:
1- Enforceability:
A void agreement is not enforceable by law.
2- Defects:
A void agreement is not void ab-initio and its defects cannot be removed.
3- Rights of third party:
In a void agreement a third party who buys goods in good faith and for consideration does not acquire any rights.
4- Compensation:
In a void agreement the person is not entitled to compensation for loss arising due to non-performance of the agreement.
5- Collateral agreement:
A collateral agreement to void agreement is not enforceable by law.
6- Laps of time:
It can never become a valid contract on the expiry of reasonable time.
7- Free consent:
It is void due to lack of any essentials of a valid contract except free consent.
Voidable contract:
1- Enforceability:
A voidable contract is enforceable by law till it is rejected.
2- Defects:
A voidable contract is not void ab-initio and its defects can be removed.
3- Rights of third party:
In a voidable contract a third party who buys goods in good faith and for
consideration acquires rights before the contract Is rejected.
4- Compensation:
In a voidable contract, a person is entitled to compensation for loss arising due to non-performance of the contract.
5- Collateral agreement:
A collateral agreement to a voidable contract is enforceable by law.
6- Laps of time:
It may become a valid contract if the aggrieved party does not reject it with in a reasonable time.
7- Free consent:
It is voidable contract because the consent of a party is not free.