Which of the following describes a void contract?

• A. Enforceable and can be performed
• B. Enforceable but can be terminated
• C. Voidable
• D. Cannot be enforced and cannot be performed

Answer: (D)

Void contracts have no legal effect from the start. They lack a valid basis—such as legality of the subject, capacity of the parties, or genuine mutual agreement—so there’s no binding obligation to perform and no remedy the court would offer to enforce it. In other words, it cannot be enforced and cannot be performed. This distinguishes them from voidable contracts (which are valid at first but can be canceled) and unenforceable contracts (which could be performed but a legal defense prevents enforcement). The defining point is that a void contract is ineffective before any party acts, so neither side can be compelled to perform.