Contracts
What does it mean when a contract is 'void'?
AThe contract can be cancelled by one party
BThe contract was never legally valid and has no legal effect✓ Correct
CThe contract requires court approval to enforce
DThe contract can be ratified by both parties
Explanation
A void contract has no legal effect from the beginning. It cannot be enforced by either party. Examples include contracts for illegal purposes or contracts with incompetent parties.
Related New Mexico Contracts Questions
- A New Mexico seller gives a buyer 'first right of refusal' on a property they own. The buyer later finds out the seller sold to a third party without notifying the buyer. The buyer may:
- A New Mexico purchase contract that has been signed by the buyer but not yet by the seller is best described as:
- In New Mexico, which of the following clauses in a listing agreement describes the conditions under which the listing terminates early?
- In New Mexico, what is a 'release of contingency'?
- A New Mexico purchase contract states 'closing on or before July 15.' The actual closing occurs on July 14. This is:
- A New Mexico seller accepts an offer but later receives a higher offer before closing. The seller must:
- A New Mexico seller's counteroffer specifying a new price of $310,000 in response to an offer of $295,000 creates what legal result for the original offer?
- A New Mexico seller who has accepted an offer but then changes their mind and refuses to close is in breach of contract. The buyer's available remedies include:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →