What is indicated by the term 'Void-ab-initio'?

The term 'Void-ab-initio' refers to a legal concept that describes a contract or agreement that is considered invalid from the very beginning of its existence. It implies that the contract has no legal effect and is treated as if it never existed. This could occur due to various reasons, such as the subject matter being illegal, the parties lacking the capacity to contract, or the contract lacking essential elements like mutual consent.

Understanding this concept is crucial as it delineates contracts that are nullified right from their inception, distinguishing them from contracts that may be valid but later voided due to subsequent events or conditions. The other options present different legal concepts or definitions that do not apply to the specific meaning of 'Void-ab-initio,' further emphasizing the importance of knowing this term in the context of contract law.