What distinguishes a void contract from a voidable contract?

A void contract is one that is deemed invalid from the very beginning, meaning it cannot be enforced by either party. This could occur due to reasons such as illegality, lack of capacity, or failure to meet fundamental legal requirements. As a result, neither party can enforce the terms of a void contract, and it has no legal effect.

On the other hand, a voidable contract is valid and enforceable until one of the parties decides to exercise their right to cancel it. This could happen in situations where one party was misled, coerced, or otherwise unable to fully understand the terms of the agreement. Until that party chooses to cancel the contract, it remains in effect and is legally binding.

The distinction lies primarily in the status of the contracts from inception: a void contract lacks any legal standing from the very start, while a voidable contract retains its legal validity until a party opts to invalidate it. This fundamental difference helps clarify which type of contract a party may pursue or contest in a legal context.