What does 'Void-ab-initio' refer to in legal terms?

'Void-ab-initio' is a legal term that signifies a contract or agreement that is considered invalid from the very beginning of its formation. This means that the contract is treated as if it never existed, due to various reasons that could undermine its legality, such as lack of capacity, illegality, or absence of consent. When a contract is deemed void-ab-initio, it has no legal effect, and the parties involved are not bound by its terms.

In contrast, valid contracts are those that fulfill all legal requirements and are enforceable from the moment they are created. Thus, options suggesting a valid contract contradict the concept of 'void-ab-initio.' This distinction is essential in understanding the enforceability of contracts within the legal framework. The other terms provided relate to different contexts that don't pertain directly to the validity or enforceability of contracts.