If a Contract Is Void Ab Initio It Has

question 17

Multiple Choice

If a contract is void ab initio it has:

• A)no legal effect from the date a court rules it is void
• B)no legal effect from the very beginning.
• C)no legal effect once the guilty party terminates the contract.
• D)no legal effect once there is a failure by one party to perform the contract.

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Definitions:

Direct Labour Costs

Expenses incurred for workers who are directly involved in the manufacturing or production of goods or services.

Cost Of Goods Manufactured

The total cost incurred to produce goods that are completed within a specific accounting period.

Raw Materials Inventory

The total cost or value of raw materials held in stock that are yet to be used in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the production process, including maintenance, utilities, and salaries of support staff.