Which of the following best describes a void contract?

Which of the following best describes a void contract?

• A. A contract that can still be ratified
• B. A contract deemed unenforceable by law
• C. A valid contract that is in dispute
• D. A contract with optional terms

Answer: (B)

A void contract is best described as a contract that is deemed unenforceable by law. This means that such contracts lack legal effect from the outset and cannot be enforced by either party. Factors that can make a contract void include illegality, incapacity of the parties, or lack of consideration. Because a void contract has no legal standing, parties are not bound to perform any obligations under it, and it cannot be ratified or validated. In contrast, a valid contract in dispute may still hold legal weight even if the parties disagree about terms or fulfillment; an enforceable contract may still be subject to legal action. A contract with optional terms implies that certain provisions may not be mandatory, but it doesn't invalidate the entire contract. A ratifiable contract generally implies that it may become valid upon certain conditions being met, which distinguishes it from a void contract that cannot be enforced at any point.

A void contract is best described as a contract that is deemed unenforceable by law. This means that such contracts lack legal effect from the outset and cannot be enforced by either party. Factors that can make a contract void include illegality, incapacity of the parties, or lack of consideration. Because a void contract has no legal standing, parties are not bound to perform any obligations under it, and it cannot be ratified or validated.

In contrast, a valid contract in dispute may still hold legal weight even if the parties disagree about terms or fulfillment; an enforceable contract may still be subject to legal action. A contract with optional terms implies that certain provisions may not be mandatory, but it doesn't invalidate the entire contract. A ratifiable contract generally implies that it may become valid upon certain conditions being met, which distinguishes it from a void contract that cannot be enforced at any point.