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ContractsContract ValidityMEDIUM

A contract formed for an illegal purpose in Delaware is considered:

Correct Answer

B) Void and unenforceable from the moment it was created.

A contract formed for an illegal purpose is void ab initio — void from the very beginning — meaning it has no legal effect whatsoever and cannot be enforced or ratified by either party. Unlike a voidable contract, which remains valid until one party elects to rescind it, an illegal contract is treated as though it never existed and courts will not assist either party in enforcing it.

Answer Options
A
Voidable at the option of either party.
B
Void and unenforceable from the moment it was created.
C
Valid and enforceable if both parties consent to its terms.
D
Enforceable only after review and approval by a Delaware court.

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Related Topics & Key Terms

Related Topics:

void vs. voidable contractscontract validityillegal contractspublic policy

Key Terms:

void contractillegal purposevoid ab initiovoidablecontract validity
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