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    PracticeCPA®CPA REG Practice Exam 2Question 52
    Hard1 markMultiple Choice
    Area II: Business LawREGBusiness LawContracts

    CPA · Question 52 · Area II: Business Law

    Which of the following is a 'void' contract?

    Answer options:

    A.

    A contract to commit a crime.

    B.

    A contract entered into by a minor.

    C.

    A contract induced by fraud in the inducement.

    D.

    A contract where one party was drunk (but not adjudicated incompetent).

    How to approach this question

    Distinguish Void (never existed legally) from Voidable (can be cancelled). Illegality and Physical Duress = Void.

    Full Answer

    A.A contract to commit a crime.✓ Correct
    A
    A contract with an illegal purpose (e.g., to commit a crime) is VOID (void ab initio). Contracts with minors, or induced by fraud in the inducement, are VOIDABLE (valid until cancelled by the protected party).

    Common mistakes

    Confusing Void and Voidable.
    Question 51All questionsQuestion 53

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