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ContractsContract ValidityMEDIUM

A contract formed for an illegal purpose is:

Correct Answer

B) Void from the beginning and unenforceable

A contract formed for an illegal purpose is void ab initio — void from the beginning. Because it lacks the essential element of lawful object, it has no legal effect and cannot be enforced by either party, regardless of the parties' agreement or the passage of time.

Answer Options
A
Voidable at either party's option
B
Void from the beginning and unenforceable
C
Fully enforceable between the parties
D
Valid unless challenged within 30 days

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Related Topics & Key Terms

Related Topics:

void vs. voidable contractslawful object as element of valid contractNebraska Real Estate License Actcontract rescissionin pari delicto

Key Terms:

voidvoid ab initioillegal contractvoidableunenforceablelawful objectcontract elements
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