What defines a void contract?

A void contract is essentially an agreement that lacks legal effect from the moment it is created. One primary reason for a contract to be deemed void is that it does not contain critical provisions required by law, such as having a lawful object, being entered into by parties with the capacity to contract, and adhering to proper legal formalities. This means that if any essential elements required by statutory law are missing, the contract cannot be enforced in a court of law.

In contrast, while a contract that is signed without consent (such as in the case of fraud, duress, or misrepresentation) may indeed be unenforceable, it does not automatically qualify as void; it may instead be considered voidable at the discretion of the injured party. Similarly, a contract that has been rescinded by both parties is not void but rather is treated as if it was never in effect, as both parties mutually agree to terminate it. Therefore, the defining feature of a void contract primarily lies in its failure to meet legal requirements, rendering it invalid from the outset.