Contracts

In Hawaii, what is the difference between void and voidable contracts?

AA. A void contract is enforceable; a voidable contract is not
BB. A void contract has no legal effect from the start; a voidable contract is valid but can be canceled by one party✓ Correct
CC. A void contract can be ratified; a voidable contract cannot
DD. There is no legal distinction in Hawaii

Explanation

A void contract has no legal effect and cannot be enforced (e.g., contract for illegal purpose). A voidable contract is valid but may be canceled at the option of one party (e.g., contract with a minor).

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