Arizona Real Estate License Practice Exam

A contract is considered void when it cannot be enforced by either party due to certain circumstances. In this context, each situation presented individually provides a valid reason for a contract to be void.

When one party is a minor, the law recognizes that minors may not have the legal capacity to enter into contracts. Because of this lack of capacity, any contracts they enter into are generally voidable, meaning they can be rejected at the minor's discretion. However, if a contract is deemed void, it has no legal effect from the outset.

Similarly, an agreement made under duress can also result in a void contract. Duress involves one party being forced or threatened into entering the contract against their will. If a contract is formed under these conditions, it is considered invalid because true consent is not present.

Lastly, if one party is incapacitated—due to mental incapacity or being under the influence of substances, for example—the contract can also be regarded as void. Individuals who lack the mental capacity to understand the nature and consequences of their actions cannot effectively enter into agreements.

Since each of these conditions (being a minor, entering an agreement under duress, and being incapacitated) independently contribute to a contract being deemed void, the situation can be accurately summarized