What characterizes a void contract?

A void contract is one that lacks legal effect and is not enforceable by law. This means that even if the parties involved agree to the terms, the contract has no validity and cannot be upheld in a court of law. A void contract often arises from factors such as illegality, lack of capacity to contract (e.g., a minor or someone mentally incapacitated), or the absence of mutual assent.

In contrast, a contract may be rescinded if it is voidable, meaning it can be validated or canceled by one of the parties under certain circumstances, such as misrepresentation or undue influence. While payment in monthly installments pertains to the terms of a contract, it does not directly relate to whether the contract is void. Additionally, the mental or physical condition of the parties (e.g., being sick) does not automatically render a contract void unless it specifically affects the capacity to contract. Thus, the defining characteristic of a void contract is its lack of enforceability by law.