Once signed, a contract is legally binding unless:
Select one:
a. One party is unable to finance its part of the work.
b. One party is unable to perform.
c. It is declared null and void by either party's legal counsel.
d. It is in violation of applicable law.
The correct answer is: One party is unable to perform.
Once signed, a contract is binding to both sides. Contracts typically state that either side can choose to terminate the agreement by negotiating a settlement based on work already performed. Generally, the inability to perform or get financing, or one party's belief that the contract is null and void does not change the fact that the contract is binding. however, both sides agree to terminate the contract, the contract can move into closure. An illegal contract is not enforceable.