What must be true for a contract to be void?

A contract is considered void when it lacks consideration because consideration is a fundamental element required for the formation of a legally binding agreement. Consideration refers to something of value being exchanged between the parties involved in the contract. Without consideration, there is no legal basis for the agreement, and it cannot be enforced in a court of law.

While mutual intent is important in establishing that both parties agree to the terms of the contract, if there is no consideration, the contract cannot be valid or enforceable, regardless of that mutual intent. Similarly, while it is common for contracts to involve legal entities, the presence of legal entities alone does not validate a contract. A valid contract must also meet the conditions of enforceability, such as intention to create legal relations and legality of purpose, but lacking consideration explicitly renders a contract void from the outset. Therefore, a void contract does not fulfill the basic requirements that define valid agreements, primarily that absence of consideration.