Which consequence occurs when a contract is void?

When a contract is deemed void, it means that the contract lacks essential elements required by law, making it unenforceable. These essential elements typically include mutual agreement, consideration, legal capacity, and a lawful purpose. If any of these are absent, the contract cannot be legally upheld, meaning that it is as if the contract never existed.

In practical terms, this means that neither party has any legal rights or obligations under a void contract. For instance, if a contract is formed for an illegal act, it would not be enforceable because it lacks a lawful purpose. Therefore, the essence of a void contract is that it fails to meet the legal criteria necessary for it to be valid, leading to a situation where the law treats it as though it never happened.