"Both Limited Liability Partnerships and Limited Liability Companies offer limited liability protection, yet they differ significantly in structure…

Void Contract: As per Section 2 (j) of the Indian Contract Act,1872, “a contract which ceases to be enforceable by law becomes void when it ceases to be enforceable”. Thus, a void contract is one which cannot be enforced by a court of law. Voidable Contract: Section 2(i) defines that “an agreement which is enforceable by law at the option of one or more parties thereto, but not at the option of the other or others is a voidable contract”. The distinction between a Void Contract and a Voidable Contract are as under: S. No. Basis Void Contract Voidable Contract 1 Meaning A Contract ceases to be enforceable by law becomes void when it ceases to be enforceable. An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract. 2 Enforceability A void contract cannot be enforced at all. It is enforceable only at the option of aggrieved party and not at the option of other party. 3 Cause A contract becomes void due to change in law or change in circumstances beyond the contemplation of parties. A contract becomes a voidable contract if the consent of a party was not free. 4 Performance of contract A void contract cannot be performed. If the aggrieved party does not, within reasonable time, exercise his right to avoid the contract, any party can sue the other for claiming the performance of the contract. 5 Rights A void contract does not grant any legal remedy to any party. The party whose consent was not free has the right to rescind the contract within a reasonable time. If so rescinded, it becomes a void contract. If it is not rescinded it becomes a valid contract.