For a contract to be enforceable by law, what must be true about its purpose?

For a contract to be enforceable by law, its purpose must be legal and not against public policy. This principle is foundational to contract law, as it ensures that the agreements made do not involve illegal activities or violate societal norms and values. Essentially, a contract’s legality is vital; if the purpose of a contract violates a law or runs contrary to established public policy aims (such as promoting health, safety, or morals), it cannot be enforced. This safeguards individuals and the community from being obligated to participate in transactions that are harmful or unethical.

In contrast, other aspects such as favorability to the insurer, the need for tangible goods, or vagueness do not hold weight in determining the enforceability of a contract. A vague contract can lead to disputes about its terms and thus may not be enforceable, while a contract’s favorability to one party does not inherently affect its legality. Moreover, contracts are not confined to tangible goods and can encompass services, intellectual property, and other intangible benefits, provided they adhere to legal standards.