What must the purpose of a contract achieve?

What must the purpose of a contract achieve?

• A. It must always involve monetary exchange
• B. It must serve a personal interest of one party
• C. It must be to accomplish a goal that is legal and not against public policy
• D. It can be for any purpose, legal or illegal

Answer: (C)

The purpose of a contract must accomplish a goal that is legal and compliant with public policy. Contracts are binding agreements between parties, and their enforceability is contingent upon the legality of their objectives. Engaging in a contract for illegal purposes undermines the foundational legal principles that govern contract law, making such agreements void and unenforceable. For instance, if a contract involves actions that are prohibited by law or contravene societal norms (public policy), it will not hold up in court. Therefore, ensuring that the purpose of a contract aligns with legal and ethical standards is crucial for its legitimacy and enforceability in a legal context. This principle is pivotal in upholding the integrity of contractual relations within society.

The purpose of a contract must accomplish a goal that is legal and compliant with public policy. Contracts are binding agreements between parties, and their enforceability is contingent upon the legality of their objectives. Engaging in a contract for illegal purposes undermines the foundational legal principles that govern contract law, making such agreements void and unenforceable. For instance, if a contract involves actions that are prohibited by law or contravene societal norms (public policy), it will not hold up in court. Therefore, ensuring that the purpose of a contract aligns with legal and ethical standards is crucial for its legitimacy and enforceability in a legal context. This principle is pivotal in upholding the integrity of contractual relations within society.