What type of contract appears to have all essential elements but cannot be enforced in court?

The correct answer is unenforceable contract. An unenforceable contract contains all the essential elements of a valid contract—such as offer, acceptance, consideration, capacity, and legality—but for some reason, it is not enforceable in a court of law. This may occur due to certain legal defenses, such as expiration of the statute of limitations or failure to comply with certain formalities required by law.

An unenforceable contract may appear legitimate and could even be valid in the eyes of the parties involved, but when it comes to enforceability, certain external factors prevent it from being upheld by the judicial system. For example, if a contract is required to be in writing under the Statute of Frauds, but lacks that written form, it remains unenforceable despite containing all essential elements.

In contrast, a void contract is one that lacks legal effect from the beginning, meaning that it is considered null and cannot be ratified. A voidable contract, on the other hand, is valid and enforceable until one party chooses to void it based on certain conditions, such as misrepresentation or undue influence. A formal contract usually refers to a contract that requires a specific form to be enforceable, such as being in writing and signed.