What is a void contract?

A void contract is defined as one that lacks legal or binding force from the moment it is created. This means that it cannot be enforced by either party and does not provide any legal rights or obligations. Such contracts are considered unenforceable due to reasons such as the absence of a legal purpose, lack of consideration, or the parties lacking the capacity to enter into a contract (e.g., minors or mentally incapacitated individuals).

In contrast, a legally binding contract contains all the necessary components to create enforceable obligations between the parties involved. A contract that is not yet signed does not automatically make it void; it may still be valid once signed. Similarly, a contract in the process of negotiation may eventually lead to a valid agreement but is not enforceable until finalized. Thus, a void contract is distinct because it is treated as if it never existed in a legal context.