Voiding Contracts

Lesson:

Under U.S. contract law, a void contract has no legal effect whatsoever.

It is treated as if it never existed.

• Illegality - The contract's performance requires an illegal act.
• Lack of contract offer - One party must make a clear, definite proposal to enter into an agreement with specific terms.
• Lack of contract acceptance - The other party must unambiguously agree to the exact terms of the offer, creating mutual agreement.
• Lack of contract consideration - Both parties must exchange something of legal value.
• Lack of mutual assent - The parties must share a common understanding of the contract’s essential terms.
• Lack of legal capacity - All parties must have the legal ability to contract, such as being of legal age, mentally competent, and not disqualified by law.
• Duress or undue influence - The contract was either signed under duress (threat of harm) or undue influence (one party unfairly influenced another due to a relationship of trust or authority).
• Impossibility of performance (at time of formation) - Performance was objectively impossible at the time the contract was formed.
• Fraud in the execution - One party was defrauded about the very nature of the contract itself.
• Unconscionability - The contract was so one-sided that it shocks the conscience. This often occurs when one party has a significantly stronger bargaining position than the other.

Answer:

Explanation:

The contract's performance requires an illegal act.