Contracts
What is the difference between a 'void' and 'voidable' contract in Nevada real estate?
AVoid contracts can be enforced by one party; voidable contracts cannot be enforced by either party
BA void contract has no legal effect from the outset (it never was a valid contract); a voidable contract is initially valid but can be cancelled by one party due to a legal defect (fraud, duress, minority)✓ Correct
CBoth terms mean the contract is unenforceable in Nevada
DA void contract requires court action to cancel; a voidable contract cancels automatically
Explanation
Void contracts are legally nonexistent — they were never valid. Examples: a contract for an illegal purpose, or a contract where there was no meeting of the minds. Voidable contracts are valid unless the affected party elects to disaffirm. Examples: contracts signed by minors (minor can void), contracts induced by fraud (defrauded party can void), contracts signed under duress (coerced party can void). In Nevada real estate, buyers must act promptly to rescind voidable contracts before waiving their rights.
Related Nevada Contracts Questions
- What is an 'as-is' clause in a Nevada purchase agreement and does it eliminate all seller disclosure requirements?
- What is the purpose of a 'cure period' in a Nevada commercial lease default provision?
- What is an 'addendum' versus an 'amendment' in a Nevada purchase agreement?
- What is a Nevada real estate broker's obligation regarding a contract that contains illegal terms?
- What is a Nevada short sale addendum and when is it used?
- What is the 'parol evidence rule' and how does it affect Nevada real estate contracts?
- What is 'liquidated damages' and how does it function in a Nevada purchase agreement?
- What is a 'counter proposal' (counteroffer) and what happens to the original offer?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →