A contract is considered void if it violates what principle?

A contract is deemed void if it violates the principle of legality. This principle requires that the subject matter of the contract must be lawful. If a contract involves illegal activities, such as committing a crime or violating public policy, it will not be enforceable in a court of law.

For instance, a contract for the sale of illegal drugs would be void because its subject matter is against the law. Contracts that contravene statutes or regulations or that are deemed harmful to society cannot be upheld.

The other concepts, such as formalities, mutual consent, and capacity, are essential for creating valid contracts but do not alone render a contract void if the underlying purpose is lawful. Formalities refer to the requirements for the contract format, mutual consent ensures all parties agree to the terms, and capacity addresses the legal ability of the parties to enter into a contract. While violations of these principles may affect the enforceability or validity of a contract, it is the violation of legality that definitively results in a void contract.