What is a key feature of an unenforceable contract?

A key feature of an unenforceable contract is that it is not in the correct form. Certain contracts must meet specific legal requirements to be considered enforceable. For instance, certain agreements must be in writing or must follow a particular formal process as per statutory requirements, such as the Sale of Goods Act or the Statute of Frauds. If a contract does not adhere to these legal formalities, even if the parties have agreed upon the terms and there is an intention to create legal relations, the contract remains unenforceable in a court of law.

While other features, such as having specific terms or mutual consideration, can be present in unenforceable contracts, they do not define the lack of enforceability. Additionally, the notion that an unenforceable contract is automatically void is not accurate; it simply means that it cannot be enforced by either party in a court, but it may still have effects in specific circumstances, such as recovery of unrewarded benefits. Thus, the correct focus on the necessity of being in the proper form highlights the significance of legal compliance in contract formation.