What is the exam-ready distinction?
| Official syllabus topic | Contracts: Validity and Enforceability |
|---|---|
| Official PSI area | Contracts |
| Published weight | 19% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | Void | Voidable | Unenforceable |
|---|---|---|---|
| Legal status | No legal effect from the beginning | Valid unless the protected party rescinds or avoids it | May be valid but a court remedy is unavailable because of a defense |
| Who can act | No party can make the invalid bargain enforceable merely by preference | Party protected by the defect generally chooses | Party raising the enforcement defense |
| Example | Agreement for an illegal purpose | Contract induced by qualifying fraud or signed by a protected minor | Oral agreement within an applicable statute of frauds |
| Exam question | Did a legal contract exist? | Who may disaffirm? | Will a court enforce it? |
Decision rule
Georgia-specific distinction
Worked example
Scenario. A competent adult induces the other party to sign through qualifying fraud, and the defrauded party has not yet rescinded.
Reason it through. Fraud can give the protected party the option to avoid a contract; it does not necessarily mean no contract ever existed.
Answer. The contract is voidable by the defrauded party.
Common exam traps
- Using void and voidable interchangeably
- Assuming only unsigned contracts are unenforceable
- Letting the wrong party disaffirm
- Treating a bad deal as legal invalidity
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1A competent adult tricks another party into signing a purchase agreement through fraud. The defrauded party has not yet chosen to rescind. What is the contract's status?
- A. Void from the start for both parties
- B. Voidable by the defrauded party
- C. Unenforceable by either party
- D. Valid and binding on both parties
Show answer and explanation →
Answer: B. Voidable by the defrauded party
Fraud gives the defrauded party the choice to avoid the contract, so it stays valid unless that party elects to rescind. That makes it voidable, not void. Calling it void is the mistake, but fraud does not mean a contract never existed.
Question 2Two parties sign a lease of a building to be used for an illegal gambling operation. What is the lease's status?
- A. Voidable by the landlord
- B. Valid but unenforceable
- C. Void
- D. Valid until a court rules
Show answer and explanation →
Answer: C. Void
An agreement for an illegal purpose is void and has no legal effect from the start. Neither party can make it enforceable by choosing to go forward. Voidable is the wrong choice, but that status requires a protected party with a choice, and illegality protects no one.
Question 3A seller and buyer orally agree on the sale of a lot, and neither has performed. Georgia's statute of frauds requires contracts for the sale of land to be in writing. How is the agreement best classified?
- A. Void
- B. Voidable by the buyer
- C. Valid and enforceable
- D. Unenforceable
Show answer and explanation →
Answer: D. Unenforceable
An oral agreement covered by the statute of frauds may otherwise be valid, but the writing requirement gives a defense that blocks court enforcement. That makes it unenforceable. Void is wrong because nothing about the agreement is illegal, and the problem is a missing writing.
Ready to move on?
You have this distinction down when all of these are true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one key fact.
- Explain the rule or fact that makes each distractor wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Executed Versus Executory Contract. Next, executed versus executory contract adds a second way to classify a contract, by how much has been performed, as with a signed purchase agreement still waiting on closing.
Return to the complete exam-concept library or the Contracts hub.