What defines a void contract?

A void contract is defined as a contract that cannot be enforced by law, making the chosen answer accurate. This means that such a contract is treated as if it never existed in the eyes of the law. Various factors can render a contract void, including illegality, lack of capacity, or impossibility of performance.

For instance, if a contract involves illegal activities, it automatically becomes void because the law does not recognize agreements that are against public policy. Similarly, if one party lacks the legal capacity to contract, such as a minor or someone deemed mentally incompetent, the contract is void.

In contrast, the other options describe attributes that do not apply to void contracts. A mutual agreement that is well understood or an enforceable contract would imply that both parties have legally valid obligations, which contradicts the definition of a void contract. A verbal contract could potentially be valid and enforceable, depending on the applicable laws and circumstances, so it does not categorize a contract as void. Thus, the correct definition of a void contract is one that lacks legal enforceability.