Questions: For a contract to be enforceable by law, the purpose of the contract must be
A. For the benefit of the general public.
B. For financial gain.
C. Legal and not against public policy.
D. Of pure intent.
Transcript text: For a contract to be enforceable by law, the purpose of the contract must be
A. For the benefit of the general public.
B. For financial gain.
C. Legal and not against public policy.
D. Of pure intent.
Solution
Answer
The answer is C. Legal and not against public policy.
Explanation
Option A: For the benefit of the general public.
While contracts that benefit the general public can be enforceable, this is not a requirement for enforceability. Contracts are private agreements and do not need to serve the public interest to be valid.
Option B: For financial gain.
Contracts do not need to be for financial gain to be enforceable. Many contracts are made for non-financial reasons, such as agreements to exchange services or to perform certain actions.
Option C: Legal and not against public policy.
For a contract to be enforceable, it must have a legal purpose and not violate public policy. This means the contract's terms must comply with the law and not involve illegal activities or be detrimental to societal standards.
Option D: Of pure intent.
While the intent of the parties is important in forming a contract, the concept of "pure intent" is not a legal requirement for enforceability. The focus is on the legality of the contract's purpose and terms.