What does ‘void ab initio’ imply regarding a contract?

'Void ab initio' is a Latin term that means "invalid from the outset." In the context of contracts, this implies that a contract has no legal effect from the moment it was created. It indicates that the contract is treated as if it never existed, and therefore, lacks any enforceability against the parties involved.

This concept is crucial in various legal contexts, as it provides clarity on the status of a contract that is deemed unacceptable due to factors such as illegality, incapacity of parties, or other essential elements necessary for a valid agreement.

The other options do not capture the essence of what 'void ab initio' means. For example, stating that a contract is valid until proven otherwise suggests that there is a presumption of validity, which contradicts the nature of a contract that is void ab initio. Similarly, implying that a contract is only valid if signed does not align with the idea that the contract was never valid to begin with. Lastly, claiming that a contract requires a verification process also diverges from the immediate and absolute invalidity encapsulated in 'void ab initio.'