[amp_mcq option1=”Valid contracts – contains all essential elements” option2=”Void contracts – not legally enforceable since its beginning” option3=”Voidable contracts – valid agreement” option4=”All of the above contracts offer correct explanation” correct=”option3″]
The correct answer is: C. Voidable contracts – valid agreement.
A valid contract is an agreement that meets all the legal requirements for a contract to be enforceable. A void contract is an agreement that is not legally enforceable because it lacks one or more of the essential elements of a contract. A voidable contract is a valid agreement that one or more of the parties has the right to cancel.
Here is a brief explanation of each option:
- A valid contract is an agreement that meets all the legal requirements for a contract to be enforceable. These requirements include:
- Offer and acceptance: There must be an offer from one party and an acceptance of that offer by the other party.
- Consideration: Each party must give something of value to the other party.
- Capacity: The parties must have the legal capacity to enter into a contract.
- Legal purpose: The contract must have a legal purpose.
- A void contract is an agreement that is not legally enforceable because it lacks one or more of the essential elements of a contract. For example, a contract that is made by a minor is void because minors do not have the legal capacity to enter into contracts.
- A voidable contract is a valid agreement that one or more of the parties has the right to cancel. For example, a contract that is made under duress is voidable because the party who was forced to enter into the contract did not have the free will to do so.
In conclusion, the only option that is wrong is C. Voidable contracts – valid agreement. A voidable contract is a valid agreement, but one or more of the parties has the right to cancel it.