Contracts
Under Hawaii law, a contract to sell illegal drugs would be:
AA. Voidable at the seller's option
BB. Void ab initio (void from the start) as it lacks lawful purpose✓ Correct
CC. Enforceable if both parties agreed voluntarily
DD. Valid until challenged in court
Explanation
A contract for an illegal purpose is void—it has no legal effect and cannot be enforced by either party because it lacks the essential element of lawful purpose.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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