What is a void contract?

A void contract is indeed characterized as having no legal effect, meaning it is treated as if it never existed. This can occur for various reasons, such as if the subject matter of the contract is illegal, or if one party lacked the capacity to enter into the agreement. The key point is that since a void contract is inherently invalid, neither party can enforce it or claim any legal rights or obligations under it.

In contrast, a legally binding agreement refers to valid contracts where parties have a legal obligation to fulfill their terms. A contract that has not been fulfilled implies that both parties entered into a valid agreement, but one or both have failed to meet their obligations, which does not describe a void contract. Similarly, a contract that can be enforced in court is also a valid contract but does not apply to void contracts, which cannot be upheld by law. Thus, describing a void contract as "no contract at all" accurately captures its nature in legal terms.