What happens if a contract's legal purpose is violated?

Study for the AD Banker Life Insurance Exam. Test your knowledge with flashcards and multiple choice questions, each equipped with hints and explanations. Ensure you're prepared for the exam!

When a contract's legal purpose is violated, it may become void. A contract must have a lawful objective to be enforceable in a court of law. If the purpose of the contract is illegal or violates public policy, the contract is rendered void, meaning it cannot be upheld or enforced.

In the context of contracts, legality is a key element. For instance, a contract for an illegal activity, such as drug trafficking or any other unlawful dealings, cannot be enforced in a court. The foundational principle here is that the law will not provide a remedy for a breach of contract that is itself illegal.

Understanding this concept emphasizes the importance of ensuring that all contracts entered into must be for purposes that are compliant with the law. This helps protect the interests of all parties involved and maintains the integrity of the legal system.

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