What term describes an agreement that cannot be enforced by law?

Prepare for the Minnesota Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

The term that describes an agreement that cannot be enforced by law is a void contract. A void contract is a legal concept in which the agreement lacks enforceability from its inception, meaning that it is as if the contract never existed in the eyes of the law. This could result from various factors, such as illegality, lack of capacity (such as mental incapacity), or failure to meet essential legal requirements.

Understanding the characteristics of a void contract is crucial as it indicates that neither party has any legal rights or obligations stemming from the agreement, and thus, no party can seek legal remedies for breach or non-performance. This is distinct from other types of contracts, such as voidable contracts, which may be valid but can be enforced or voided at the discretion of one party under certain circumstances.

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