Contracts

A purchase agreement that is 'void' differs from one that is 'voidable' in that a void contract:

ACan be enforced by either party at their election
BHas no legal effect from the beginning and cannot be ratified✓ Correct
CCan be ratified by the party with the power to void it
DRequires court action to be set aside

Explanation

A void contract has no legal effect whatsoever — it is as if it never existed. Examples include contracts for an illegal purpose. A voidable contract is valid and enforceable unless the party with the power to void it chooses to do so (e.g., a contract signed by a minor).

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