Which statement best distinguishes void contracts from voidable contracts?

• A. A void contract results in a nullity; the contract is unenforceable, while a voidable contract remains valid until avoided.
• B. A void contract can be enforced in court; a voidable cannot.
• C. A void contract arises only from fraud; a voidable arises from mistake.
• D. A void contract is valid until declared void; a voidable is automatically void.

Answer: (A)

The key idea is how enforceability works from the start and what happens before any action is taken. A void contract has no legal effect from the beginning; it is a nullity and unenforceable. A voidable contract, by contrast, is initially valid and enforceable, but one party has the right to cancel (avoid) it later because of defects like misrepresentation, fraud, duress, or lack of capacity. Because of this, the statement correctly captures that a void contract is a nullity and cannot be enforced, while a voidable contract remains valid until it is avoided. The other options misstate enforceability, the role of fraud vs. mistake, or when a contract is considered void or voidable.