Categories of contract

* A voidable contract
is one that, because of
misrepresentation,
mistake,
non-disclosure or
undue influence,

may be set aside by one of the

parties,
subject to certain restrictions

(e.g. that both parties can be restored to

their original positions and that the
rights of a third party will not be upset if
the contract is ended).

A buyer of goods cannot, therefore,

rescind the sale contract

unless he can return the goods, and

the seller cannot rescind

if he has already sold the goods to a

third party.

A void contract is one that

has no legal force from the moment
of its making,

e.g. because of lack of capacity of the

parties, or mistake.

An illegal contract is one that is

prohibited by statute or
illegal at common law on the grounds
of public policy and
automatically void since it is
impossible to perform within the law.

An unenforceable contract, although valid,

cannot be enforced because it is neither
evidenced in writing not supported by a
sufficient act of part performance.
The contract might be
not capable of proof, or
not stamped (where stamping is required), or
legal remedy may be barred by lapse of time.

* A valid contract is one that does not

fall into one of the above categories.