Multiple choice

An agreement which is not enforceable legally is called

  1. voidable

  2. void

  3. illegal

  4. voidable contract

  5. valid but voidable at the option of one party

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1) is incorrect: Under Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is void from the beginning and can never become voidable. Option (2) is correct: Under Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is said to be void. Option (3) is incorrect: An agreement not enforceable by law is not illegal. Option (4) is incorrect: Under Section 2(g) of the Indian Contract Act, 1872, an agreement when enforceable by law becomes contract.