What happens if a signature is forged on a contract?

When a signature is forged on a contract, it typically results in the contract being potentially deemed void or voidable. This is because a forged signature indicates that one party did not genuinely agree to the terms of the contract, violating the fundamental principle of mutual consent required for a valid contract. If one party is found to have forged a signature, the other party may have the right to void the contract altogether, as the agreement was not entered into legitimately.

In some cases, it may also be deemed voidable, allowing the party whose signature was forged to choose whether to affirm the contract or seek to have it declared invalid. This situation hinges on the legal principle that all parties must have agreed to the terms with the intention of creating a binding obligation. As such, the presence of a forged signature undermines this consent, leading to the conclusion that the contract lacks the necessary elements to be considered legally enforceable.

The other options do not accurately reflect the nature of a forged signature. For instance, the idea that the contract remains valid and enforceable is fundamentally flawed when a signature has been forged, as there is no legitimate agreement. Similarly, considering the forged signature legally binding contradicts the purpose of authenticating a party's consent to the contract.