If a contract is void, which statement is true?

If a contract is void, which statement is true?

• A. It has no legal effect from the outset.
• B. It is enforceable by either party.
• C. It can be ratified later.
• D. It still binds the parties.

Answer: (A)

A contract that is void has no legal effect from the outset. It’s treated as if it never formed, so no rights or obligations arise for either party. Because there’s nothing valid to validate or enforce, there’s nothing to ratify later and it cannot be binding on the parties. The other statements imply ongoing enforceability or the possibility of binding after “fixing” the contract, which isn’t true for a void agreement. For contrast, a voidable contract is valid until one party chooses to rescind, but a void contract is not valid from the start.

A contract that is void has no legal effect from the outset. It’s treated as if it never formed, so no rights or obligations arise for either party. Because there’s nothing valid to validate or enforce, there’s nothing to ratify later and it cannot be binding on the parties. The other statements imply ongoing enforceability or the possibility of binding after “fixing” the contract, which isn’t true for a void agreement. For contrast, a voidable contract is valid until one party chooses to rescind, but a void contract is not valid from the start.