Under what condition is a contract generally considered void?

Study for the Real Estate Contract Test. Improve your knowledge with interactive flashcards and multiple-choice questions, each equipped with hints and explanations. Prepare well for your exam!

A contract is generally considered void when it requires an illegal act for performance. This is grounded in public policy and legal principles that maintain that agreements to engage in illegal activities cannot be enforced. Such contracts lack the essential element of legality, which is required for a contract to be valid. Courts will not recognize or enforce a contract that involves illegal activities because it undermines the law and societal norms.

While contracts entered into with minors may be voidable — meaning they can be affirmed or rejected by the minor — this does not inherently classify them as void. Contracts involving minors can still have legal implications, depending on the context and jurisdiction. Therefore, the presence of an illegal act is the primary reason a contract is deemed void, distinguishing it from other situations where a contract may still hold legal standing or be subject to different rules.

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