Contracts
A contract that is 'voidable' differs from a 'void' contract in that a voidable contract:
AHas no legal effect whatsoever from its inception
BCan be affirmed or disaffirmed by one of the parties✓ Correct
CRequires court action to become enforceable
DMust be re-executed with a notary to become binding
Explanation
A void contract has no legal effect at all. A voidable contract is valid but may be rescinded by the party with the power to void it (e.g., a minor or a party who was defrauded). Until voided, it remains enforceable.
Related Arkansas Contracts Questions
- A real estate contract signed by a minor (under 18) in Arkansas is:
- When a buyer defaults on a real estate contract, the seller's most common contractual remedy is to:
- An 'evergreen clause' in a real estate contract automatically:
- An addendum to a real estate contract is best described as:
- When a buyer defaults on a purchase contract, the seller's remedy of keeping the earnest money as full compensation is known as:
- A buyer includes a financing contingency in their offer. If the buyer is unable to obtain a loan, the contingency allows the buyer to:
- A 'contingency' in a purchase contract functions as a:
- A buyer makes an offer on a property. Before the seller accepts, the buyer changes their mind and withdraws the offer. This is:
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