Contracts are a fundamental aspect of business transactions. They are legally binding agreements that govern the relationship between two or more parties, outlining their respective rights and obligations. However, not all contracts are created equal. Some may be considered unlawful or illegal, rendering them unenforceable and potentially exposing the parties involved to legal liability.

There are several circumstances under which a contract would be considered unlawful or illegal. These include:

1. Contrary to public policy: Contracts that go against public policy are generally considered unlawful. For example, contracts that involve illegal activities such as drug trafficking or prostitution.

2. Violation of antitrust laws: Contracts that violate antitrust laws, which prohibit monopolies and anti-competitive behavior, are illegal and unenforceable.

3. Fraud: Contracts that are entered into under false pretenses or with the intention to deceive are void. This includes contracts obtained through misrepresentation, concealment, or other fraudulent means.

4. Duress or coercion: Contracts that are signed under duress or coercion, such as when one party threatens physical harm or blackmail, are considered illegal and unenforceable.

5. Lack of capacity: Contracts signed by minors, mentally incapacitated individuals, or those under the influence of drugs or alcohol may be considered invalid.

6. Unconscionability: Contracts that are so one-sided that they are unconscionable, or shock the conscience, may be deemed illegal and unenforceable.

7. Breach of contract: Contracts that are breached by one or both parties may become illegal or unenforceable, depending on the severity of the breach.

In conclusion, it is essential to ensure that any contract you enter into is legal and enforceable. If you suspect that a contract may be unlawful or illegal, it is crucial to seek legal advice before proceeding. Remember, a contract is only as good as its legality, and a breach could result in significant financial and legal consequences.