An attempted contract that is made for an illegal purpose or that is against public policy cannot be enforced by either party and is void. In contrast, a contract that is made by a minor (usually under age 18), or that is based on a mutual mistake, or that was made on the basis of a fraudulent misrepresentation by one party, is voidable and may be rejected by a party who was at a disadvantage when the contract was made. A voidable contract may also be ratified and accepted by such a party—after a child reaches the age of majority (usually 18), or the parties become aware of their mutual mistake, or a party learns of the other party’s misrepresentation and proceeds with performance of the contract.

In Indiana, as in other states, a contract created for an illegal purpose or against public policy is considered void and unenforceable. This means that neither party can seek the court's assistance to enforce the terms of the contract. On the other hand, a contract that involves a minor (typically under the age of 18), is based on a mutual mistake, or was formed due to fraudulent misrepresentation by one of the parties, is categorized as voidable. A voidable contract allows the disadvantaged party to either reject or ratify the contract. For instance, a minor may disaffirm a contract before reaching the age of majority or within a reasonable time after turning 18, but they may also choose to ratify the contract upon reaching adulthood. Similarly, parties to a contract can either rescind or affirm the contract upon discovering a mutual mistake or fraudulent misrepresentation. Indiana law provides specific statutes and case law that govern the enforceability of contracts under these circumstances, ensuring that parties who are at a disadvantage have the opportunity to seek a fair resolution.