Which element ensures the contract has a lawful objective?

• A. Legal purpose
• B. Agreement
• C. Competent parties
• D. Consideration

Answer: (A)

Having a lawful objective is essential because a contract that aims at an illegal or public-policy-violating purpose isn’t enforceable. The law allows courts to refuse to enforce agreements whose purpose would facilitate wrongdoing or violate statutes, even if the other elements are present. While mutual agreement, competent parties, and consideration are all needed to form a contract, they don’t guarantee that the objective is legitimate. A contract could have agreement, capacity, and value exchanged, yet be void if the objective is illegal. For that reason, ensuring a lawful objective is what makes the contract enforceable.