For a contract to be valid, what must its purpose be?

A valid contract must have a lawful objective, meaning that the purpose for which the contract is created must not violate any laws or public policy. If the purpose of a contract is illegal or goes against the interests of society, the contract is considered void and unenforceable. For example, a contract for the sale of illegal drugs or to commit a crime would not be valid because it has an unlawful objective.

While it is also essential for contracts to have clearly defined terms, be advantageous for the participants, and sometimes be documented in writing depending on the type of contract or jurisdiction, the fundamental requirement is that the contract's purpose must be lawful. Otherwise, no legally binding agreement can exist, regardless of how well the other elements are met.