Introductory Business Law CLEP Prep Practice Exam

Under which of the following circumstances could a contract be void?

1. It was formed without consideration

2. It was not signed by both parties

3. It was formed under duress

4. All of the above

The correct answer is: All of the above

A contract could be considered void if it was formed without consideration, meaning that one party did not receive anything of value in exchange for their promise. It could also be considered void if it was not signed by both parties, as it may be seen as lacking mutual assent. In addition, if a contract was formed under duress, it may be deemed void as this means that one party was coerced or forced into entering the contract against their will. Therefore, all of the options listed could potentially result in a void contract, making option D the correct answer.