contracts
legal purpose
An essential element of a valid contract requiring that the contract's object and terms be lawful. A contract to do something illegal, such as a sale that violates fair housing laws or a deal to launder money, is void and cannot be enforced by either party. Also called legality of object.
- Exam tip
- A contract without a legal purpose is void, not voidable. Exams may pair this with discriminatory deed restrictions, which are unenforceable.
- Example
- An agreement to sell a building to be used for an illegal gambling operation lacks legal purpose and is void.
Related terms & state variants
Sources
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Last verified: 2026-10-23