An illegal objective in a contract results in which outcome?

• A. True
• B. False
• C. It makes it voidable
• D. It makes it void due to illegality

Answer: (D)

When the objective of a contract is illegal, the agreement is unenforceable from the start. Courts will not enforce or aid a contract whose purpose violates law or public policy, so the contract is void ab initio—it’s as if it never existed in the eyes of the law. This is different from a voidable contract, which arises from defects in how the agreement was formed and can be rescinded. If the illegal aspect can be separated from the legal parts, some jurisdictions may allow severance, but when the illegality goes to the heart of the contract, the whole agreement is void due to illegality.