Which term describes an agreement that is not enforceable from the outset?

Study for the CA Foundation Business Law Exam. Practice with multiple-choice questions, review detailed explanations, and ace your exam!

A void contract is defined as an agreement that lacks legal enforceability from the very beginning. This type of contract is considered null and has no legal effect, meaning neither party can enforce it. Examples of void contracts include agreements that involve illegal activities or contracts that lack the necessary elements of a valid contract, such as mutual consent, lawful object, and consideration.

On the other hand, a conditional contract, for instance, is enforceable but only upon the occurrence of a certain event. An executed contract refers to an agreement that has been fully performed by all parties involved, and a bilateral contract involves mutual promises between two parties. While these concepts involve different aspects of agreements and their enforceability, they do not address the core definition of a void contract, which is fundamentally unenforceable from the outset.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy