What does public policy state about illegal or harmful contracts?

Public policy establishes that contracts that involve illegal activities or are deemed harmful to society are void. This principle means that such contracts cannot be enforced by either party in a court of law. The rationale is that allowing enforcement of illegal agreements would undermine the legal system and societal norms.

For example, if two parties enter into a contract for an illegal activity, such as drug trafficking, neither party could seek legal recourse if the other fails to perform, as the contract itself is against public policy. This reinforces the idea that the law does not support or recognize illegal agreements, ensuring that contracts must align with the legal framework and ethical standards of society. This helps maintain order and protect individuals from exploitation or harm that could arise from engaging in unlawful activities.

The other choices reflect misunderstandings of how the law treats contracts that contravene public policy; they imply that such contracts could be enforceable or altered in some way, which contradicts established principles in contract law.