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A void agreement and a void contract differ in that:
ABoth terms mean exactly the same thing
BA void contract is void from start; void agreement may be revived
CA void agreement is void ab-initio; a void contract was valid initially but ceased to be enforceable
DVoid agreement requires court declaration; void contract does not
Answer & Solution
Correct answer: C. A void agreement is void ab-initio; a void contract was valid initially but ceased to be enforceable
1. Per OCR: "Void agreement is void ab-initio but void contract is a valid contract at the beginning but subsequently becomes void when it ceases to be enforceable."
2. Example for void contract: war breaks out between two trading nations.
3. Example for void agreement: agreement with impossible event.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 52)_
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