Contracts must have a Lawful Purpose

The video explains that contracts with illegal purposes, such as those involving criminal activities, are unenforceable. It also discusses unconscionable contracts, which are so unfair that enforcing them would be unjust. Contracts that violate public policy, like monopolistic agreements, are also unenforceable. Lastly, the video covers covenants not to compete, which are only enforceable if they are reasonable in terms of time and geographic scope.

What are the conditions under which a contract cannot be enforced?

Explain what an unconscionable contract is and provide an example.

What is the significance of bargaining power in contract enforceability?

What types of contracts are considered against public policy?

Describe the limitations on covenants not to compete.