Under what condition is a contract considered void?

A contract is considered void when it is deemed illegal. This means that the agreement involves activities or terms that violate the law or public policy. Contracts for illegal purposes, such as those involving crime or fraud, are not enforceable, as the law does not recognize the legality of the agreement. Thus, even if the parties involved believe they have a contract, the courts will not enforce it because it contradicts legal standards.

For instance, if two parties enter into a contract to distribute illegal substances, this contract would be void because it conflicts with laws prohibiting such activities. The rationale behind declaring such contracts void is to uphold the integrity of the legal system and to deter unlawful behavior.

In contrast, contracts that are unmet may still be valid but simply unfulfilled, while disputed contracts refer to disagreements over terms without rendering them void. Unenforced contracts can still be valid but may not be acted upon by one or both parties, further distinguishing them from illegal contracts.