Contracts

In Oregon, what is the difference between a 'void' and 'voidable' contract?

AVoid contracts are enforceable; voidable ones are not
BA void contract has no legal effect from inception; a voidable contract is valid but may be avoided by one party✓ Correct
CBoth terms describe unenforceable agreements
DVoidable contracts must be voided by both parties; void contracts by one

Explanation

A void contract has no legal effect and cannot be ratified or enforced (e.g., a contract for an illegal purpose). A voidable contract is valid and enforceable unless the party with the right to avoid it (e.g., a minor, or a party who was defrauded) chooses to rescind it. The distinction is important in Oregon real estate contracts.

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