Question

The Contract Act 1872 deals with contract law in India, its rights, duties, and exceptions arising out of it. Section 2(h) of the Act gives us the definition of a contract, which is simply an agreement enforceable by law. To understand the difference between void agreements and voidable contracts it is important to talk about sections 2(h), 2(a). 20), 2(d), 14, 16 (3) and 15,24-28 of the Indian Contact Act. Void agreements are fundamentally invalid making them unenforceable by default. These agreements cannot be fulfilled as they consist of illegal elements, and they cannot be enforced even after subjecting it to both parties. However, in the case of voidable contract, the agreement is initially enforceable, but it is later on denied at the option of either of the parties due to various reasons.
Unless rejected by a party, this contract will remain valid and enforceable. The party who is at the disadvantage due to any circumstance applicable to the contract has the ability to render the agreement void. A void agreement is void ab initio making it impossible to rectify any defects in it while voidable contracts can be rectified. In case of a void agreement, neither of the parties is subject to any compensation for any losses but voidable contracts have some remedies.
A valid agreement forms a contract that may again be either valid or voidable. The primary difference between a void agreement and voidable contract is that a void agreement cannot be converted into a contract.
(Extracted with edits from A Comparative Study of Voidable Contracts and Void Agreements)