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 Arizona, contracts made for illegal purposes or against public policy are considered void and unenforceable by law. This means that if the nature of the contract involves activities that are illegal or actions that are deemed to violate societal standards or norms, neither party can seek legal recourse to enforce the terms of the contract. On the other hand, contracts that are voidable involve situations where one party may have been at a disadvantage during the formation of the contract. This includes contracts made by minors (under the age of 18), those based on mutual mistakes, or those formed under fraudulent misrepresentation. While these contracts are initially valid, the disadvantaged party has the option to either reject (void) or ratify (accept) the contract. In Arizona, a minor may disaffirm a contract before reaching the age of majority or within a reasonable time afterward, but they may also choose to ratify the contract upon reaching the age of majority. Similarly, parties to a contract based on a mutual mistake or fraudulent misrepresentation may either rescind the contract upon discovery of the issue or may choose to proceed with the contract, thereby ratifying it.