what is a voided contract
DEFINITION of 'Void Contract'. A formal agreement that is illegitimate and unenforceable from the moment it is created.A void contract could be considered void for a number of reasons.he fundamental difference between these two types of contracts is that a void contract is not legally valid or enforceable at any point in its existence, while a voidable contract can be legal and enforceable depending on how the contract defect is handled. RELATED TERMS.