A contract can be described as valid, void, voidable, or unenforceable, depending on the circumstances.
- A contract is valid when it meets all the essential elements that make it legally sufficient or enforceable.
- A contract is void when it has no legal force or effect because it lacks some or all of the essential elements of a contract.
- A contract that is voidable appears on the surface to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle. If it is not disaffirmed, a voidable contract may nevertheless end up considered by the courts to be valid if the party who has the option to disaffirm the agreement does not do so within a period of time prescribed by state law. Several situations may result in a contract that is voidable.
- A contract entered into under duress
- A contract entered into while intoxicated
- As a result of fraud, mistake, or misrepresentation, it is always voidable by the compelled or defrauded party.
- A contract with a minor is also voidable; minors are permitted to disaffirm real estate contracts at any time while underage and for a certain period of time after reaching majority age.
- Finally, a contract entered into by a mentally ill person usually is voidable during the mental illness and for a reasonable period after recovery. On the other hand, a contract made by a person who has been adjudicated insane (that is, found to be insane by a court) is void at the outset based on insanity judgments being a matter of public record.
Illinois law provides that all persons come of “legal age” on their 18th birthday. Contracts entered into by a minor in Illinois are voidable until the minor reaches majority and for a reasonable time afterward. There is no statutory period within which a person may void a contract after reaching majority in Illinois. What is considered “reasonable” depends on the circumstances of each case, although the courts tend to allow a maximum of six months.
