What element makes a contract unenforceable if any term is against public policy?

The element that makes a contract unenforceable when any term is against public policy is lawful purpose. Contracts must be formed for a legal and ethical purpose; if any provision of the contract contradicts the established norms of society or legal standards, the entire agreement can be rendered void or unenforceable. Public policy reflects the principles that the law supports for the community's welfare and interests.

For instance, a contract that involves illegal activities, such as a drug trade or human trafficking, would not be enforceable, regardless of the other valid aspects of the agreement. This concept ensures that contracts do not violate moral standards or laws designed to protect individuals and society at large.

In contrast, capacity refers to the ability of parties to enter a contract, mutual assent pertains to the agreement of the parties on the terms, and an offer is merely a proposal to enter into a contract. While these elements are crucial to the formation of a valid contract, they do not directly address the enforceability related to public policy.