When entering into a contract, it is important to ensure that all the terms and conditions are legally binding. However, there are certain circumstances when a contract can be declared void ab initio, meaning it is void from the beginning. In this article, we will take a closer look at some examples of contract void ab initio.

1. Contracts entered into under duress

A contract is considered void ab initio if it is entered into under duress. Duress refers to a situation where a party is forced to enter into a contract against their wishes due to coercion or threats. For instance, if someone signs a contract at gunpoint, it would be considered void ab initio.

2. Contracts involving minors

In most states, a contract entered into by a minor under the age of 18 is considered voidable. However, in some cases, the contract may be void ab initio if it can be proved that the minor did not have the capacity to understand the terms of the contract. For example, if a 14-year-old signs a contract to purchase a car, the contract would be considered void ab initio if it can be proved that the minor did not fully understand the consequences of the agreement.

3. Contracts entered into under fraud or misrepresentation

A contract is considered void ab initio if it is entered into under fraudulent or deceptive circumstances. This can include situations where one party intentionally misrepresents the terms of the contract to the other party. For instance, if a seller misrepresents the condition of a product to the buyer, the contract would be considered void ab initio.

4. Contracts in violation of public policy

Contracts that violate public policy are considered void ab initio. Public policy refers to the principles and values that are considered to be in the best interest of society as a whole. For example, a contract that involves illegal activities such as drug trafficking or prostitution would be considered void ab initio.

5. Contracts entered into under mistake or impossibility

A contract is considered void ab initio if it is entered into under a mistake or impossibility. This can include situations where the parties had a mistaken belief about the facts of the contract. For instance, if a seller and buyer enter into a contract for the sale of a car, but the car is destroyed in a fire before the sale is completed, the contract would be considered void ab initio due to impossibility.

In conclusion, it is important to be aware of the situations that can lead to a contract being void ab initio. Contracts entered into under duress, involving minors, fraud or misrepresentation, in violation of public policy, or under mistake or impossibility can all be declared void from the beginning. If you suspect that a contract you have entered into may be void ab initio, it is best to seek legal advice to determine your options.