What happens if a contract is for actions prohibited by law?

When a contract is for actions that are prohibited by law, it is considered void due to lack of legality. Contracts must have a lawful purpose to be enforceable in a court of law. If the subject matter of the contract involves illegal activities, then it is deemed unenforceable. This principle reflects the idea that the legal system cannot support or enforce agreements that are against public policy or violate existing statutes.

For example, if two parties enter into a contract for the sale of illicit drugs, that contract cannot be enforced because it involves a criminal act. The law does not recognize any rights or obligations stemming from such a contract. Therefore, even if both parties might have intended to uphold the terms of their agreement, the contract has no legal effect, and the courts will not intervene to enforce it or award damages related to it.

In contrast, other options suggest that the contract could be enforceable, modifiable, or executed with mutual agreement, but none of these scenarios can apply when the underlying actions are illegal. The law strictly prohibits contracts that are centered around unlawful purposes, reinforcing the need for legality as a cornerstone of contract formation.