Which term describes an inherently unenforceable contract that cannot be performed due to impossibility, illegality, or public policy?

• A. Voidable contract
• B. Void contract
• C. Executed contract
• D. Formal contract

Answer: (B)

When a contract cannot be enforced from the start because its purpose is illegal, performance is impossible, or it goes against public policy, it is void. A void contract has no legal effect and cannot be enforced by either party, and it cannot be ratified later. This distinguishes it from a voidable contract, which is valid initially and only becomes unenforceable if a party chooses to void it. It also differs from an executed contract, where all obligations have already been fulfilled, and from a formal contract, which is defined by a required form rather than by its enforceability. For example, a contract to commit a crime is void because its purpose is illegal, and a contract to perform something inherently impossible from the start is void for impossibility.