BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A void contract
A
has no seal
B
is not in writing
C
has not legal effect at all
D
can be voided or rescinded by a least one of the parties
Explanation: 

Detailed explanation-1: -A void contract is a contract that isn’t legally enforceable, starting from the time it was created. While both a void and voidable contract are null, a void contract cannot be ratified. In a legal sense, a void contract is treated as if it was never created and becomes unenforceable in court.

Detailed explanation-2: -What is the Effect of a Void Contract? A void contract means neither party can enforce the contract when it was formed, as the contract had never been created. Therefore, neither party can enforce any rights or perform any obligations set out in the contract. A void contract is different from a voidable contract.

Detailed explanation-3: -A void contract is a formal agreement that is illegitimate and unenforceable from the moment it is created.

Detailed explanation-4: -A void agreement is one, which according to law is neither enforceable nor it creates any legal consequences. The void contract, on the other hand, is a contract which is valid at the time of formation but becomes unenforceable, due to impossibility or illegality. A void agreement is void since it has been created.

Detailed explanation-5: -On the other hand, the void agreements are not enforceable by the law and there is no legal recourse. However, performance of the agreement can be done as it is not strictly forbidden. Hence, this means that all illegal agreements are void in nature but it is not necessary that all void agreements are illegal.

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