California Real Estate SalespersonContractsEasy
A broker drafts a listing agreement to sell a property that is currently zoned exclusively for agricultural use, but the contract calls for construction of a shopping center prohibited by that zoning. What is the legal status of this contract?
- AVoidable, because one party can rescind due to mistake
- BVoid, because the object of the contract is unlawful
- CValid, but unenforceable until a variance is granted
- DValid, because zoning restrictions do not affect private contracts
Show answer & explanationAnswer & explanation
Correct answer: B. Void, because the object of the contract is unlawful
A contract with an illegal object—one that requires an act prohibited by law—is void from the outset, meaning it has no legal effect and cannot be enforced by either party.
Why the other options are wrong
- A. Voidable contracts can be enforced unless rescinded; this contract has no legal effect at all.
- C. A void contract is never valid, regardless of future permit approval.
- D. Zoning laws are a form of law that can render a contract's object unlawful.
Void Contract - Illegal Object
A contract is void if its object or purpose violates a law or public policy, meaning it has no legal force from its creation.
- Void contracts cannot be ratified or enforced
- Illegal object is different from illegal formation, though both cause voidness
- No party has a right of action under a void contract
- Distinguish from voidable contracts, which are enforceable until rescinded
Memory trick: Void = 'Never Valid'; Voidable = 'Valid Until Voided'.