Question

When a contract is void ab initio ____________.

• A. It is void from the beginning and if a contract is void ( say for mistake ) ab inito, this has the consequence that no innocent third parties can acquire rights under any subsequent contract
• B. Only the parties to the contract can claim their rights
• C. It is discretion of the court to make its specific performance
• D. None of the above

Answer 1

Answer: (A)

It is void from the beginning and if a contract is void ( say for mistake ) ab inito, this has the consequence that no innocent third parties can acquire rights under any subsequent contract

Void ab initio means void from beginning.

It is a Latin legal maxim. Legally, it signifies that the contract was void when it's made that's from the very beginning at the time when it was created. In these contracts there is no intention to be in a legal relationship. Hence, there's no restrictions on breach of contract.

Hence, A is the correct option.