Void vs. unenforceable

Definition

A 'void' contract is treated as if it never existed and has no legal effect. An 'unenforceable' contract may have been validly formed but cannot be enforced by a court. The distinction matters because voidness traditionally carries 'customary incidents' including the right to go to court for rescission, while unenforceability is typically raised as a defense.

Examples

• •The 1980 amendments replaced 'shall be void' with 'unenforceable by either party,' which petitioners argue eliminated the basis for the TAMA rescission right.

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