A contract that involves illegal activity is:

A contract that involves illegal activity is:

• A. Valid and enforceable
• B. Illegal and unenforceable
• C. Enforceable with modifications
• D. Voidable at will

Answer: (B)

A contract that involves illegal activity is classified as illegal and unenforceable. This means that the law does not recognize such a contract, and parties cannot seek enforcement or legal remedies for breaches of the contract. The fundamental principle here is that the legal system does not support or protect agreements that violate laws or public policy. For example, if a contract stipulates engagement in criminal acts, such as drug trafficking or fraud, it cannot be enforced in court because it undermines legal standards and ethical norms. As a result, any attempt to claim rights or obligations under such a contract will be rejected. Additionally, contracts need to have a lawful purpose to be considered valid. When the objective of the agreement is illegal, it renders the entire contract void, making it impossible for either party to enforce the terms or seek damages for non-performance. This principle upholds the integrity of the legal system and discourages individuals from making deals that contradict the law.

A contract that involves illegal activity is classified as illegal and unenforceable. This means that the law does not recognize such a contract, and parties cannot seek enforcement or legal remedies for breaches of the contract.

The fundamental principle here is that the legal system does not support or protect agreements that violate laws or public policy. For example, if a contract stipulates engagement in criminal acts, such as drug trafficking or fraud, it cannot be enforced in court because it undermines legal standards and ethical norms. As a result, any attempt to claim rights or obligations under such a contract will be rejected.

Additionally, contracts need to have a lawful purpose to be considered valid. When the objective of the agreement is illegal, it renders the entire contract void, making it impossible for either party to enforce the terms or seek damages for non-performance. This principle upholds the integrity of the legal system and discourages individuals from making deals that contradict the law.