What happens to a contract after a legal change?

When there is a legal change that affects a contract, the general rule is that the contract remains enforceable unless the change renders the performance of the contract illegal or impossible. This means that a contract will not automatically become void simply because a law has changed; instead, it will still be valid and binding unless the new legal standard specifically prohibits the actions that the contract requires.

For example, if a law changes that makes it illegal to perform a certain type of contract, such as selling a product that is now banned, then the contract would be unenforceable because the performance has become illegal. However, if a legal change occurs that merely alters the circumstances but does not make the performance illegal or impossible, the contract continues to hold validity.

The other options misrepresent how contracts interact with changes in the law. Contracts do not automatically void unless specified by statute or case law, and not all legal changes necessitate renegotiation of the contract's terms. Additionally, notarization is not a prerequisite for enforceability in general terms; it is typically associated with certain types of documents or jurisdictions but does not apply to all contracts.