Types of Contracts
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Questions and Answers

In what circumstances can a contract be voidable?

  • When the contract lacks essential elements
  • When one party lacks free consent (correct)
  • When all parties freely consent
  • When it is enforceable by law

    • What is the main characteristic of a valid contract?

  • It is induced by coercion or fraud
  • It lacks essential elements
  • All parties fulfill their contractual obligations (correct)
  • It is not enforceable by law

    • What causes a contract to become void?

  • Enforceability by law
  • Fulfillment of contractual obligations
  • Change in events or circumstances (correct)
  • Presence of free consent

    • What happens to rights under a void contract?

    <p>No rights accrue under a void contract</p> Signup and view all the answers

    When does a voidable contract cease to be binding on one party?

    <p>When the affected party avoids the contract within a reasonable time</p> Signup and view all the answers

    Which element is absent in a voidable contract?

    <p>Free consent</p> Signup and view all the answers

    What is a voidable contract?

    <p>A contract that is enforceable by law at the option of one or more parties, but not at the option of others</p> Signup and view all the answers

    What rights does a voidable contract give to the aggrieved party?

    <p>Rights to claim damages and rescind the contract</p> Signup and view all the answers

    Define a valid contract.

    <p>A contract that is enforceable by law and meets all legal requirements</p> Signup and view all the answers

    What happens if a voidable contract is disputed and set aside?

    <p>It becomes a valid contract</p> Signup and view all the answers

    How does an executory contract differ from an executed contract?

    <p>An executed contract is one that has been fully performed, while an executory contract is one that is yet to be performed</p> Signup and view all the answers

    What distinguishes a unilateral contract from a bilateral contract?

    <p>The type of obligations in the contract</p> Signup and view all the answers

    What is the main difference between an agreement and a contract?

    <p>An agreement lacks enforceability by law, while a contract is enforceable.</p> Signup and view all the answers

    Why does a void contract differ from a valid contract?

    <p>A void contract ceases to be enforceable at law, unlike a valid contract.</p> Signup and view all the answers

    What is the legal status of a void contract?

    <p>It lacks any legal effect and is deemed a nullity.</p> Signup and view all the answers

    Why is consideration required in a valid contract?

    <p>To make the agreement legally binding.</p> Signup and view all the answers

    What happens to a valid contract that lacks consideration?

    <p>It remains valid but unenforceable.</p> Signup and view all the answers

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