A voidable contract remains capable of legal effect unless the party protected by law obtains its cancellation. Section 518 permits an affected party to seek cancellation of contracts formed in circumstances recognized by the Code, including defects affecting genuine consent.[2]
Void and voidable are therefore different: a void contract is invalid from inception, while a voidable contract requires action by the protected party to set it aside.
Sources
- Nepal Law Commission, **National Civil Code, 2074 — Chapter 3: Validity of Contracts**, ss. 517–520. View source