What is the Difference between void contracts and voidable contracts?

Answer 1

A void contract is one that has no effect due to some fundamental defect. Generally no property can pass under a void contract. Contracts contrary to public policy, for example, to restrain another from pursuing their business, are usually void.

A voidable contract on the other hand, is a valid contract but the law gives one party an option whether or not to proceed with the agreement. For instance, there may be misrepresentation which allows the innocent party to make certain choices, thus a contract declared voidable.

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Answer 2

A void contract is no contract at all - in the eyes of the law it has never existed because of some fundamental problem.

A voidable contract is a contract which one side has the right to avoid at any time. However, until they exercise that right, the contract is valid and enforceable. In most legal systems the right to avoid a contract can be lost (eg. by delay, or by affirming the contract by performance).