Which of the following is a potential consequence of a contract being deemed void?

When a contract is deemed void, it essentially means that the contract is not legally recognized and has no legal effect from the moment it is created. As a result, such a contract cannot be enforced by either party, meaning that neither party has any legal recourse to compel the other to fulfill the terms of the agreement. This is foundational in contract law; when voidness is established, it acts as if the contract never existed at all.

In contrast, the other options present scenarios that are not applicable to a void contract. For example, if a contract is void, it cannot be enforced by either party, so the notion that either party could enforce it is inaccurate. Additionally, both parties cannot mutually decide to continue with a void contract since it lacks legal standing. Lastly, while one party may be held liable for damages in some contractual disputes, this premise does not apply to void contracts, as there is generally no basis for a claim or liability when the contract itself is void. Hence, the characterization of a void contract aligns strictly with the understanding that it cannot be enforced under any circumstances.