In What Way Is a Void Contract Different from a Voidable

question 57

Multiple Choice

In what way is a void contract different from a voidable contract?

• A) A void contract contains a defect so substantial that it is of no force or effect.
• B) A void contract cannot be enforced because it is contrary to legislation or public policy.
• C) A voidable contract fails to meet the requirements imposed by the Statute of Frauds.
• D) A voidable contract fails to meet the requirements imposed by the Sale of Goods Act.

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Definitions:

Settlement

An agreement reached between parties in a dispute, where they resolve their differences without going to court.

Chapter 7

A provision of the U.S. Bankruptcy Code that provides for the liquidation of a debtor's assets to pay off creditors.

Chapter 11

A chapter of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States.

Chapter 13

A section of the U.S. bankruptcy code allowing individuals earning a regular income to develop a plan to repay all or part of their debts.