Which of the Following Is True About Void and Voidable

question 62

Multiple Choice

Which of the following is true about void and voidable contracts?

• A)A void contract is not a contract at all;a voidable contract can be terminated by one party.
• B)Both parties must agree to terminate a void or a voidable contract because otherwise there would be no privity.
• C)Either party can terminate the contract at any time.
• D)Both contracts are illegal.
• E)Both contracts must contain an illegal object.

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Definitions:

Corporate Dissolution

The process of legally terminating the existence of a corporation, involving the cessation of business operations, liquidation of assets, and distribution of the residual to creditors and shareholders.

Shareholder Petition

A formal request or action taken by one or more shareholders of a company, often to address grievances or propose changes in company policy or management.

Shareholder Approval

The process of obtaining consent from shareholders, typically through voting, for corporate actions such as mergers, acquisitions, or selling significant assets.

Asset Acquisition

The purchase of a company's assets instead of its stock, generally to obtain select pieces of the company without assuming its liabilities.