Which statement is true regarding the object of a contract?

The statement that the object of a contract must be legal is fundamental in contract law. An object refers to the subject matter of the contract, which can include goods, services, or rights. For a contract to be enforceable, the object must not violate any laws or public policy. This means that if the object of a contract involves something illegal (for example, selling narcotics or conducting an illicit service), the contract is void and unenforceable.

While it is important for the object to have value or benefit the parties involved, the primary requirement is that it must be legal. This ensures that the institution of contracts serves to uphold lawful and just arrangements between parties. In summary, a legal object is essential to providing a foundation for a valid contract, making this statement true. Other options that suggest the object must be purchasable, limited to real estate, or beneficial to all parties do not hold the same level of necessity as legality in the context of contract formation.