What is the outcome of a contract that is found to violate public policy?

When a contract is found to violate public policy, it is deemed void. This means that the contract has no legal effect from the moment it is created, and neither party can enforce its terms in a court of law. The concept of public policy refers to the principles and standards that are considered to be in the interest of society as a whole. Contracts that go against these principles—such as those involving illegal activities, fraud, or other unethical practices—are declared void because they undermine the integrity of the legal system and societal norms.

Contracts that violate public policy are not subject to modification for legality, nor can they be enforced or automatically renewed. This underscores the importance of ensuring that contracts align with the broader interests of public welfare and moral standards to be considered valid and enforceable. Thus, the correct understanding of the consequences of such violations emphasizes the overarching authority of public policy in contract law.