What does "legality of purpose" require for a contract to be enforceable?

Legality of purpose is a fundamental requirement for the enforceability of a contract, ensuring that the contract's subject matter is lawful and not contrary to public policy. For a contract to be enforceable, its purpose must align with the law; if the contract involves illegal activities or aims to achieve unlawful ends, it becomes void and unenforceable.

For example, if a contract is formed for an illegal drug transaction or includes terms that promote harm to the public, it would fail this requirement and thus not be recognized by the legal system. This principle protects societal interests and upholds the integrity of the legal framework, ensuring that contractual agreements are made for purposes that the law recognizes and supports.

Understanding this requirement is crucial for individuals engaging in contractual agreements, as it protects against entering into arrangements that could lead to legal repercussions or invalidation of their agreements due to illegality.