What happens to contracts that violate legal provisions?

Contracts that violate legal provisions are considered void. This means that such contracts have no legal effect and cannot be enforced by either party. The law does not recognize any rights or obligations arising from an illegal contract, rendering it as if it never existed in the first place.

The rationale behind this is to uphold legal standards and public policy. The legal system aims to discourage illegal activities by refusing to enforce agreements that contradict established laws. Therefore, if a contract is formed with terms that are illegal, such as those involving criminal activities or agreements that contravene statutory provisions, it is nullified.

While there may be consequences for entering into such a contract, including potential penalties for the parties involved, the fundamental aspect remains that the contract itself will not be upheld legally. Other options relating to enforcement or government approval do not apply in the context of contracts deemed void due to illegality.