Which of the following best describes an agreement that is not enforceable by law?

An agreement that is not enforceable by law is best described as a void contract. A void contract is considered to be without legal effect from the moment it is created, which means it cannot be enforced by either party involved. This typically occurs because the contract involves illegal activities, lacks a legal purpose, or does not meet the essential elements required for a valid contract, such as consideration, mutual assent, and capacity.

In contrast, a legally binding contract is enforceable by law; it not only has all the required elements but also represents an agreement that both parties intend to fulfill. A bill of exchange is a specific financial instrument used in commerce and is enforceable under existing laws. A voidable contract, on the other hand, is a valid contract that one party may choose to ratify or reject due to certain circumstances, such as misrepresentation or undue influence. Therefore, the concept of a void contract is fundamental to understanding the implications of agreements that lack enforceability.