Can a contract automatically be void?

A contract can automatically be void under specific circumstances, which makes this answer correct. Certain situations, such as the illegality of the contract's subject matter, the mental incapacity of the parties at the time of the agreement, or if a contractual agreement is made by a party who is a minor, can render a contract immediately void.

Additionally, contracts may also become void if they are based on a mutual mistake of fact, or if one party misrepresents material facts that were relied upon by the other party. In such cases, the law provides that the contract has no legal effect from the outset.

The other options do not accurately capture the principles regarding contract validity. The statement that no contract can be void contradicts many legal frameworks that recognize specific scenarios under which contracts can indeed be void. Similarly, saying a contract is valid until challenged ignores instances where contracts are void from their inception due to inherent reasons. Finally, the idea that a contract can only be void if both parties agree fails to consider situations where the contract is deemed void by law without mutual consent.