What term is used for a contract that includes no performance obligations?

The term that describes a contract with no performance obligations is a void contract. A void contract is one that is not legally enforceable from the moment it is created, meaning that it fails to meet the essential elements required for a valid contract, such as mutual consent, lawful object, and consideration. Since a void contract has no legal effect, it cannot generate any binding obligations for either party involved.

In contrast, an executed contract refers to one that has been fully performed by all parties. An executory contract is one in which some or all of the obligations have not yet been performed, meaning that there are still performance obligations in place. A unilateral contract involves a promise made by one party in exchange for a specific action by another party, which also establishes performance obligations on the part of the second party. Thus, the defining characteristic of a void contract is its lack of enforceability, making it the correct term for a contract without performance obligations.