Final answer:
Contracts involving minors can be void due to their lack of capacity to understand, but there are exceptions for necessities. Contracts that entail illegal acts are always void as they cannot be legally enforced. The correct answer is C) Both I and II.
Step-by-step explanation:
Contracts are agreements that must meet certain legal criteria to be enforceable, and there are circumstances when a contract can be considered void. A contract is usually void if it was entered into with a minor, as minors (generally individuals under the age of 18) are not considered capable of understanding the full implications of a contract, which affects their legal capacity to enter into contracts. However, there are exceptions where a minor can be bound by a contract, especially for necessities. Contracts that require an illegal act for performance are always void, as the law cannot enforce any agreement that involves breaking the law.
Therefore, the correct answer to the question is C) Both I and II.