An attempted contract that is made for an illegal purpose or that is against public policy cannot be enforced by either party and is void. In contrast, a contract that is made by a minor (usually under age 18), or that is based on a mutual mistake, or that was made on the basis of a fraudulent misrepresentation by one party, is voidable and may be rejected by a party who was at a disadvantage when the contract was made. A voidable contract may also be ratified and accepted by such a party—after a child reaches the age of majority (usually 18), or the parties become aware of their mutual mistake, or a party learns of the other party’s misrepresentation and proceeds with performance of the contract.
In Alaska, as in other states, a contract created for an illegal purpose or against public policy is considered void and unenforceable. This means that neither party can seek legal recourse to enforce the terms of such a contract. On the other hand, contracts involving minors, mutual mistakes, or fraudulent misrepresentations are categorized as voidable. This implies that the disadvantaged party has the option to either reject or ratify the contract. For instance, a minor in Alaska can disaffirm a contract before reaching the age of majority (18 years) or within a reasonable time afterwards, but they also have the option to ratify the contract upon reaching adulthood. Similarly, parties to a contract based on a mutual mistake or fraudulent misrepresentation can choose to void the contract upon discovery of the issue or may decide to ratify and fulfill the contract terms despite the initial disadvantage.