Contracts

In South Dakota, a contract that is 'unenforceable' differs from a 'void' contract in that:

AAn unenforceable contract has some legal effect but cannot be enforced by the courts, while a void contract has no legal effect at all✓ Correct
BA void contract can be ratified while an unenforceable contract cannot
CAn unenforceable contract automatically becomes void after 30 days
DThere is no practical difference between the two

Explanation

A void contract has no legal effect from the start (void ab initio). An unenforceable contract technically exists and may have been validly formed, but cannot be enforced by a court (e.g., an oral real estate contract that violates the Statute of Frauds). Parties to an unenforceable contract cannot sue to enforce its terms.

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