1. A void agreement has from the very beginning no legal effects. It is unenforceable at law. A voidable contract is one which one of the parties may affirm or reject at his option. It is valid and enforceable till it is repudiated or restricted.
2. The defect in the case of voidable contract is curable and may be condoned. But a void agreement is void ab initio and its defects are incurable.
3. In the case of void agreement even claiming under such contract while in the case of a voidable contract, a third party can acquire a valid title from a person claiming under such a contract.
4. Since a void agreement is unenforceable at law three does not arise may question of compensation on account of non-performance of the agreement. But in case of voidable contract, a person is entitled to compensation for loss or damages suffered by him on account of the non-performance of the contract.
5. A voidable contract does not affect the collateral transactions. But where the agreement is void on account of illegality of the object, the collateral transaction will also become void.