- 2069 Bhadra · 2+3 marks
Void vs voidable contract; general conditions
Short answer
A void contract is unenforceable from the start due to illegality or no lawful consideration, and neither party can enforce it. A voidable contract is valid until the injured party cancels it for coercion, fraud or misrepresentation. General conditions are standard terms covering definitions, duties, securities, time, payment, quality, force majeure, termination and dispute resolution.
Elaborate the differences between void and voidable contract. Explain briefly about general conditions of contract and its essential contents.
Void vs voidable contract
| Basis | Void contract | Voidable contract |
|---|---|---|
| Meaning | Not enforceable by law from the start (or becomes so) | Valid until one party cancels it |
| Cause | Illegal object, no lawful consideration, incompetent party, impossibility | Consent obtained by coercion, fraud, undue influence, misrepresentation |
| Who can act | Neither party can enforce | Only the injured party can cancel it |
| Legal effect | No legal rights or duties | Valid if the party does not cancel or ratifies |
| Example | Contract to smuggle goods | Contract signed under threat |
General conditions of contract (GCC)
The General Conditions of Contract are the standard terms and conditions that apply to all contracts of a given type (for example, works). They are fixed in advance in the standard bidding documents (PPMO standard documents in Nepal; FIDIC-type), and are modified for a particular project by the Particular (Special) Conditions.
Essential contents
- Definitions and interpretation; contract documents and priority.
- Rights and duties of employer, contractor and engineer.
- Securities (performance security), insurance and indemnity.
- Time for completion, extension of time, delay and liquidated damages.
- Payment, price adjustment, retention, variation orders.
- Quality, testing, defects liability period.
- Force majeure.
- Suspension, termination and default.
- Dispute resolution (engineer's decision, adjudication, arbitration), governing law, notices.
✓ Answer checked by Claude Opus 5.5 (high effort)
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