Which scenario would render a contract void due to 'Legality of Purpose'?

Get ready for the Leaving Certificate Business Test. Prepare with flashcards and multiple choice questions complete with hints and explanations to help you succeed. Ace your exam now!

A contract is deemed void if its purpose is illegal or goes against public policy. In this context, a contract for illegal gambling falls squarely under the concept of "Legality of Purpose." Such contracts are not enforceable in a court of law because they involve activities that are prohibited by law, meaning the agreement lacks a legal basis from the outset.

In contrast, contracts for the sale of a car, hiring a service, or renting an apartment typically involve legal activities that are permissible under the law. These agreements can be enforced as long as they fulfill other contractual requirements, such as capacity, consent, and consideration. Therefore, the illegality of the purpose distinctly makes the gambling contract void, highlighting the importance of legality in contractual agreements.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy