What is the status of an agreement involving illegal acts?

An agreement involving illegal acts is considered voided upon recognition because such contracts lack legal validity from the outset. This principle stems from the notion that the law does not recognize an agreement that involves activities that are unlawful or against public policy. In legal terms, when a contract's purpose is illegal or it requires performing an illegal act, it cannot be enforced in a court of law.

Therefore, once the illegality of the agreement is recognized, the contract is rendered void and has no legal effect. This ensures that the legal system does not sanction or support illegal activities by enforcing agreements that are inherently unlawful.

In contrast, an agreement that is valid and enforceable would require that all parties are entering into the contract for lawful purposes. Additionally, the idea that a contract could be binding if both parties agree ignores the premise that mutual consent cannot legitimize an illegal agreement. The option regarding automatic renewal is also irrelevant, as the existence of a valid contract is a prerequisite for any terms regarding renewal.