What is the consequence of entering an illegal contract?

When a contract is deemed illegal, it generally means that it involves activities that are forbidden by law or against public policy. As a result, the consequence of entering into such a contract is that the court will not assist the parties involved in enforcing its terms. This principle is designed to discourage illegal activities and maintain the integrity of the legal system.

In the context of illegal contracts, since they are not recognized as valid or enforceable agreements, the law will not provide a remedy or recourse to any party who tries to seek enforcement of such a contract. The parties involved cannot rely on the legal system for help with disputes arising from the illegal contract, effectively nullifying any claims they might have related to it.

This principle serves as a deterrent and reflects the social values surrounding lawful conduct. In contrast, options that suggest the contract could be enforced in court, that parties may recover losses, or that the contract becomes voidable do not accurately reflect the legal stance on illegal contracts, as they imply some measure of enforceability or recovery, which is not available in these circumstances.