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ContractsContract ValidityMEDIUM

A contract formed for an illegal purpose is considered:

Correct Answer

B) Void and unenforceable from the beginning

A contract formed for an illegal purpose is void ab initio — void from the beginning — and has no legal effect whatsoever. Unlike a voidable contract, which is valid until one party elects to rescind it, a void contract cannot be enforced by either party under any circumstances. In Montana, as in all states, lawful object is a required element of a valid contract; without it, no enforceable agreement exists.

Answer Options
A
Voidable at the option of either party
B
Void and unenforceable from the beginning
C
Valid if both parties agreed to the terms
D
Unenforceable but not void, subject to court discretion

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Related Topics & Key Terms

Related Topics:

voidable contractsessential elements of a contractstatute of fraudscontract rescission

Key Terms:

void contractillegal purposelawful objectvoid ab initioessential elements
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