What is a contract?

A contract is a legally binding agreement between two parties that specifies their mutual rights and
obligations.

To be legally binding between parties, a contract's formalities must be followed. They are as follows:

a. The contract must be lawful, and the contractual parties must be legally capable of entering
into one.
b. Capacity refers to a party's ability to grasp the terms of the contract and its ramifications.
c. The parties must also act freely and voluntarily, without any sort of compulsion.
d. The parties must reach an agreement or "meeting of the minds" on all material terms of the
contract. The parties must have intended to enter the contract and be bound by it.

Void and voidable contract

a. What is a void contract?

A void contract is a type of agreement that is null and invalid from its establishment. It is a type of
agreement that is null and void from the start or becomes invalid at some time in the future or is
rendered invalid at some point in the future.

b. What is a voidable contract?

A voidable contract is a sort of agreement that can only be made void by one of the parties to
the contract, and it is legally enforceable only by that one party. In a voidable contract, one
party has the legal right to choose whether or not to perform his portion. Furthermore, this
contract will only be valid until the unhappy party cancels it. A disgruntled party may cancel the
contract for a variety of reasons, including failure to disclose all relevant facts, misrepresentation
or fraud, contractual error, breach of contract, and so on. Let us look at an example to better
grasp the phrase "voidable contract".