Contracts that are void mean that they cannot be performed by either party. Essentially, it is a contract that can no longer be used, and the courts will look at it as if there had never been a contract. A problem that may result in the nullity of a contract is the subject of the contract, which is illegal in the respective State or throughout the country. Depending on the conditions and the illegal aspect, one or both parties could be prosecuted. Legally, something that is void is legally irrelevant and unenforceable. An invalid contract is legally invalid from the moment both parties sign it because it is illegal. Search: `questionable contract` in Oxford Reference » A common situation that makes a contract questionable is this: For example, you will find a car that appears to be in almost new condition at a very good price. Unknownst to it, the car was tarnished in a flood, but since then it has been dried, repainted and detailed. Later, you will learn that the car was in flood and that the seller was legally obliged to inform you.

If it turns out that the car is fine after all, you have made a good deal. However, if the car starts to break soon, the purchase contract is invalid and you can sue the previous owner. A countervailable contract is originally considered lawful and enforceable, but may be rejected by either party if it is determined that the contract is decited. If a party who has the right to reject the contract decides not to reject the contract despite the defect, the contract remains valid and enforceable. Most of the time, only one of the parties will be affected by the agreement of a questionable contract in which that party does not recognize the false statement or fraud of the other party. A contract dealing with one or more of these matters may still be considered legally enforceable if both parties still choose to comply with its terms. The aggrieved party may not acknowledge the existence of a problem with the contract, but may choose to cancel the contract if such a problem is discovered. Contracts that are no longer enforceable become null and void. If a party uses tactics such as fraud or coercion, the contract also becomes countervailable. In the case of an invalid contract, the contract cannot become valid only if both parties agree, as you cannot commit to doing anything illegal. .