Contracts

Void vs Voidable Contract

A void contract was never legally valid; a voidable contract is valid until the protected party chooses to void it.

A void contract has no legal effect and was never enforceable, such as an agreement for an illegal purpose. A voidable contract is valid and enforceable until the protected party elects to void, or disaffirm, it.

A minor's contract is the classic voidable contract: the minor may enforce it or disaffirm it. An unenforceable contract is a third category, valid in form but not enforceable in court, such as an oral land sale under the Statute of Frauds.

Capacity is where the two split, and not every incapacity lands on the same side. A minor, or an adult of unsound mind whom no court has adjudicated, produces a voidable contract, because the law is protecting that party and gives them the choice. A person a court has already adjudicated incompetent produces a void contract, because the authority to contract has passed to a guardian and there is none left to exercise.

On the exam

Void means never valid. Voidable means valid until the protected party voids it. A minor's contract is voidable.

Exam trap

Do not call a minor's contract void. It is voidable, which gives the minor the choice to enforce or disaffirm. "Lack of capacity" alone does not decide it: unadjudicated incapacity is voidable, adjudicated incompetence is void.

Tested in

Contracts & Agency (13% of the exam)

From definition to recall

See this term inside a real exam question.

Pass Texas gives you Texas-specific practice, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.

Try 5 free questions

This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.