What must the purpose of a contract be to ensure its validity?

For a contract to be valid, the purpose must be lawful. This means that the objective of the contract must not violate any laws or public policy. A contract that has an illegal purpose cannot be enforced in a court of law, as it would contradict the principles of legality that govern contractual agreements.

While it is beneficial for contracts to be discussed beforehand to ensure mutual understanding, and although beneficial outcomes for all parties can enhance the contract's value, these factors do not determine the validity of a contract. Similarly, including penalties for breach, while common in some agreements, is not a requirement for a contract's validity. Ultimately, a lawful purpose is essential for a contract to be recognized as valid and enforceable.