Which of the following statements is true about void contracts?

A void contract is one that is not legally enforceable from the moment it is created. This means that it has no legal effect and cannot be upheld in a court of law. Such contracts are considered as if they never existed, primarily because they fail to meet the essential elements required for a valid contract, such as mutual consent, lawful purpose, and competent parties.

For example, contracts for illegal activities or agreements made by parties who are mentally incapacitated are considered void from the outset. Since a void contract cannot be enforced, neither party has any legal obligations or rights arising from the contract, making option C the true statement regarding void contracts.