• A void contract is a formal agreement that is in fact illegal and unenforceable from the moment it was entered into.

  • An invalid contract is different from a voidable contract, although both can indeed be annulled for similar reasons.
  • A contract may be declared invalid if it is not enforceable in the form in which it was originally written.
  • Invalid contracts may occur when one of the parties involved is unable to fully understand the consequences of the agreement, for example, when a mentally handicapped or intoxicated person may not be consistent enough to adequately understand the parameters of the agreement, rendering it invalid.
  • Agreements entered into by minors or for illegal activities may also be declared invalid.