Three words that are not synonyms
Most missed questions in this unit come from treating void, voidable and unenforceable as interchangeable. They describe three different failures, and the exam rewards knowing which one each fact pattern triggers.
A void contract never existed in law. A voidable contract exists and binds until the protected party elects to disaffirm it. An unenforceable contract is a real agreement that a court simply will not enforce because of a procedural defect.
What is void
A contract whose purpose is against the policy of the law cannot be enforced under O.C.G.A. 13-8-2. It lacks the essential of legal purpose and is void from the outset. The other classic void case is the contract of a person under an adjudicated guardianship under O.C.G.A. 13-3-24.
What is voidable
Voidability is about capacity and consent defects.
- A 16-year-old buyer's contract is voidable under O.C.G.A. 13-3-20, because a minor may disaffirm.
- A contract induced by fraudulent statements is voidable at the election of the defrauded party under O.C.G.A. 13-5-5.
- An intoxicated buyer's contract is voidable too, since only an adjudicated incompetent under guardianship gets a void contract.
What is unenforceable
Georgia rule, same as the national rule. Under O.C.G.A. 13-5-30(a)(4) any contract for the sale of lands, or any interest in or concerning lands, must be in writing and signed by the party to be charged. An oral agreement to sell land is therefore unenforceable, not void — this is the classic trap. Voidability is the wrong label as well, since no one lacked capacity. And a genuine meeting of the minds does not rescue it: assent alone does not overcome the Statute of Frauds.