Multiple choice

Void or voidable contracts are (select best best answer)

  1. Imposes no legal rights; one party can cancel contract

  2. One party can cancel contract; imposes no legal rights

  3. Broken contract that judge must enforce

  4. Broken contract that results in a tort & negligence
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A void contract has no legal effect from the beginning and imposes no legal rights or obligations, whereas a voidable contract is a valid agreement that can be canceled or avoided at the option of one of the parties. Option A correctly describes 'void' (imposes no legal rights) and 'voidable' (one party can cancel) in that order.

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