What is the status of a contract created to pursue an illegal objective?

A contract created to pursue an illegal objective is considered void. This means that it is as if the contract never existed and has no legal effect. The rationale behind this principle is grounded in public policy; the law does not recognize or enforce agreements that are formed for illegal purposes because allowing them would undermine the integrity of the legal system and societal norms.

When two parties enter into a contract that involves illegal activities—such as drug trafficking, human trafficking, or fraud—neither party can seek legal remedies in a court of law. This encompasses any attempt to claim damages or enforce any terms of the agreement. The idea is to deter individuals from engaging in illegal behavior by denying them the protections and benefits that typically come with enforceable contracts.

In contrast, the other options suggest varying degrees of legal recognition, which do not apply when the primary purpose of the contract is illegal. For instance, a valid contract is one that meets all legal requirements and is enforceable in a court of law, while an enforceable contract is one that can be upheld in court. A voidable contract, on the other hand, is an agreement that may be canceled by one party based on specific legal defenses, often a matter of duress, misrepresentation, or other issues,