What is a void contract?

A void contract is a contract that is not legally enforceable and is, therefore, not binding on either party. This means that the contract does not have any legal effect and neither party is required to fulfill their obligations outlined in the contract. In North Carolina, a contract is considered void when a contract is made with an illegal purpose, the subject matter of the contract is illegal, the contract has been declared illegal by a court, or when one or both parties lack the capacity to enter into a contract. A contract is also unenforceable if it is not in writing when it is required to be. For example, in North Carolina a contract to purchase illegal drugs would be considered void and unenforceable by the court. Additionally, a contract entered into between two parties who are under the legal age of 18 would also be void and unenforceable. It is important to note that a contract does not need to be in writing for it to be enforceable, but written contracts often provide evidence that a contract was made in the event of a dispute. In general, courts will not enforce a contract that is considered void.

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