Void (law)
From Wikinvestor
In practical terms, void is usually used in contradistinction to voidable and unenforceable, the principal difference being that an action which is voidable remains valid until it is avoided. The significance of this usually lies in the possibility of third party rights being acquired. For example, in Cundy v Lindsay (1878) 3 App Cas 459 a fraudster induced Messrs Lindsay & Co to sell to him a quantity of handkerchiefs. The fraudster then sold the handkerchiefs on to an innocent third party, Mr Cundy. The fraudster was convicted, and the money was never recovered from him. Lindsay sued claiming ownership of the handkerchiefs. If the contract of sale was held to be voidable for fraud, the fraudster could pass good title Mr Cundy (provided that the contract had not yet been avoided), and Lindsay & Co would only have recourse against the insolvent fraudster. However, if (as was in fact held) the contract of sale was void ab initio, then title did not pass, and Lindsay could claim back the handkerchiefs as their property, and Mr Cundy was left with only a claim against the insolvent fraudster.
However, the right to avoid a voidable transaction can be lost (usually lost by delay). These are sometimes referred to as "bars to rescission". Such considerations do not apply to matters which are void ab initio.
