Contract law
Void vs voidable contract
A void contract has no legal effect from the outset — in law it never existed — whereas a voidable contract is valid and binding unless and until the innocent party chooses to set it aside (rescind it).
Last reviewed 14 June 2026
| Aspect | Void | Voidable |
|---|---|---|
| Legal status | No contract ever existed | Valid and binding until avoided |
| Typical cause | Fundamental mistake; illegality | Misrepresentation; duress; undue influence |
| Passing of title | No title to goods passes | Title passes unless and until the contract is rescinded |
| Third-party rights | A third party acquires no title | A good-faith third party can acquire good title before rescission |
Key cases
- Cundy v Lindsay (1878) 3 App Cas 459
- Phillips v Brooks Ltd [1919] 2 KB 243
- Car & Universal Finance Co Ltd v Caldwell [1965] 1 QB 525
Frequently asked questions
What is the difference between a void and a voidable contract?
A void contract never had legal effect; a voidable contract is valid until the wronged party rescinds it.
Why does the void/voidable distinction matter for third parties?
Under a voidable contract a good-faith buyer can obtain good title before it is rescinded; under a void contract no title ever passes.