What is a void contract?

A void contract is defined as an agreement that is not legally enforceable from the moment it is created. This means that it lacks either the necessary legal elements to be valid or the parties involved are unable to execute the agreement legally, such as in cases where one party is a minor or mentally incapacitated. Because of its nature, a void contract carries no legal rights or obligations for the parties involved.

The other choices represent different concepts within contract law. A legally binding contract implies that the agreement is enforceable in court, while an implied contract is one created by the actions or circumstances between the parties rather than written word. A contract with liquidated damages refers to agreements that specify a predetermined amount of money that must be paid if one party breaches the contract. Each of these choices delineates a different aspect of contract law, whereas a void contract specifically denotes a scenario where the agreement is not enforceable at all.