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A contract is void if it is worthless, that is, not really a contract at all see: Contract. Some contracts made by minors, for example, are automatically void. Contracts may be declared void on the basis that they oblige the contracting parties to commit illegal acts. Damages cannot be claimed by a party injured by attempting to comply with a void contract. For example, if I contract to pay someone to shoot a TV game show host, and the would-be murderer decides to take the money and run without satisfying his part of the deal, then the courts will not assist me to recover the money. The illegality need not be as serious as murder for this to be the case. Some contracts may not be strictly void, but can be declared void (see: Voidable contract). The distinction is important because when goods are exchanged under a voidable contract, title is passed. With a void contract no title passes, because effectively the contract never existed.
A void contract, also known as a void agreement, is not actually a contract. A void contract cannot be enforced by law. Void contracts are different from voidable contracts, which are contracts that may be (but not necessarily will be) nullified.
An agreement to carry out an illegal act is an example of a void contract or void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract. A void contract is void ab initio ie from the beginning while a voidable contract can be voidable by one or all of the parties.
A contract can also be void due to the impossibility of it's performance. Eg: If a contract is formed between two parties A & B but during the performance of the contract the object of the contract becomes impossible to achieve (due to action by someone or something other than the contracting parties), then the contract cannot be enforced in the court of law and is thus void.