Which Contract Type Is Void Ab Initio

When it comes to contracts, there are a number of different types that can be entered into by parties to an agreement. While most contracts are enforceable under the law, there are certain contract types that are considered void ab initio – meaning they are invalid from the very beginning.

So, which contract types fall into this category? Let`s take a closer look.

1. Illegal Contracts

Perhaps the most obvious contract type that is void ab initio is an illegal contract. This is any type of agreement that is contrary to law or public policy. Examples might include contracts for illegal activities like drug trafficking or prostitution, or agreements that violate antitrust laws.

In these cases, the contract is considered void from the outset, and cannot be enforced by either party.

2. Contracts Entered into under Duress or Undue Influence

Another type of contract that may be void ab initio is one that is entered into under duress or undue influence. This could happen if one party is threatened or coerced into signing a contract, or if someone with a close personal relationship to the other party exerts undue influence in order to secure their signature.

Once again, this type of contract is considered invalid from the beginning, and cannot be enforced.

3. Contracts that Lack Capacity

Finally, there are certain contracts that may be void ab initio because one or more of the parties lacks the capacity to enter into the agreement. This could include minors, individuals who are mentally incapacitated, or people who are otherwise not legally competent to enter into contracts.

In these cases, the contract may be considered invalid from the outset, or it may be voidable at the option of the party who lacks capacity.

In conclusion, there are a number of different contract types that may be void ab initio for various reasons. Whether the agreement is illegal or contrary to public policy, entered into under duress or undue influence, or simply lacks capacity, it is important for parties to a contract to be aware of the potential pitfalls that could invalidate their agreement. If you are unsure whether a contract is enforceable, it is always a good idea to seek legal advice before proceeding.

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