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ARTICLE · 11 DECEMBER 2024

Valid­i­ty, void­abil­i­ty and unen­force­abil­i­ty in con­tract law

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Explains the terms validity, voidability & unenforceability & explores the differences between them.

AustraliaCorporate/Commercial Law
Daniel Miller
Daniel Miller
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If you have entered into a contract, you or the other party have drafted without legal assistance, you should consider some of the unintended serious consequences that can arise, including where a contract or a term in a contract is void, voidable or unenforceable. There are differences between validity, voidability and unenforceability. This article explores some of those differences.

Validity
A term in a contract that is invalid is referred to as void. It has no legal effect. Where a term is void, no rights or obligations provided by the term are legally created between the parties to the contract. The term will be treated as if it never existed, and it will not bind the parties. One of the most common reasons a term in a contract is void is where it is, in a legal sense, uncertain. A court will endeavour to discover the intention of the parties from words used in the contract and as long as a term is capable of a meaning, it will ultimately be given that

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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