When is a contract considered unenforceable?

A contract is considered unenforceable when it violates public policy because such violations undermine the fundamental principles upon which legal systems function. Public policy encompasses a broad range of guidelines that govern community interests, morals, and welfare. If a contract's terms or the activities it encompasses conflict with established laws, ethical norms, or social interests, it becomes unenforceable. This ensures that the legal system does not support agreements that could cause harm to society or contravene social responsibilities.

For instance, a contract that involves illegal activities or terms that are deeply offensive to societal morals would not be upheld in a court of law. Courts are reluctant to enforce contracts that contravene public policy as doing so would risk promoting behavior or actions detrimental to societal welfare.

In contrast, while a contract that lacks consideration or is not executed by a notary may face challenges, these issues do not inherently render it unenforceable in the same manner as a violation of public policy. Contracts with vague or complex legal terms might also create difficulties in interpretation but do not automatically invalidate the agreement. Thus, the violation of public policy stands as a significant reason that easily categorizes a contract as unenforceable.