An action that never has legal effect from the beginning is called as: 

The correct answer is Void ab initio.

Key Points

• Void ab initio is a Latin term that means "void from the beginning."
• An action or contract that is declared void ab initio is considered as never having any legal effect from the outset.
• It implies that the contract or action was invalid from its inception and not just from the time it was declared void.
• This is different from a voidable contract, which is initially valid but can be declared void by one of the parties under certain conditions.
• Common reasons for a contract being void ab initio include illegality, lack of capacity, or absence of essential elements such as consent.

Additional Information

• Voidable Contract
  • A contract that is valid and enforceable on the surface but may be voided by one party if certain conditions are met.
  • Examples include contracts signed under duress or involving fraud.
  • Until voided, such contracts are considered valid and binding.
• Valid Contract
  • A contract that meets all the essential elements required by law and is enforceable in a court of law.
  • Key elements include offer, acceptance, consideration, and mutual consent.
• Unenforceable Contract
  • A contract that is valid but cannot be enforced in a court due to some technical defect or the expiration of the statute of limitations.
  • Such contracts may become enforceable if the defect is corrected.
• Illegal Contract
  • A contract that involves actions that are against the law or public policy and is void from the outset.
  • Examples include contracts for illegal activities such as drug trafficking or prostitution.