Week 6 - Enforceability of Contracts

Question 1

What are the three states of contracts?

Answer 1

• valid - legally binding contract
• void - no contract exists/ever existed
• voidable - contracts exists, but injured party can choose whether to avoid or affirm

Question 2

What are some examples of contracts that tend to be voidable instead of void?

Answer 2

• minors (who need protection)
• sale of shares
• leasing of property
• contracts of partnership