What term describes a contract that has no legal effect?

The term that describes a contract that has no legal effect is "void." A void contract is one that is considered null from the beginning, meaning it is not legally binding and cannot be enforced by either party. This can occur for several reasons, such as the contract being for an illegal purpose, lacking the necessary elements of a valid contract (like capacity or consideration), or being entered into under duress or undue influence.

In contrast, a voidable contract may be enforceable at the discretion of one party, typically because one party had a reason to back out, such as being a minor or being misled; however, until that party chooses to void the contract, it remains valid. The term "avlid" is not a recognized legal term in contract law, while "unenforceable" refers to valid contracts that cannot be enforced in court for certain reasons, such as the statute of limitations or a failure to meet certain legal formalities. Thus, "void" accurately describes a contract that holds no effect in a legal context.