Final answer:
The statement is true; an illegal agreement is not recognized as a contract by the courts and is considered void.
Step-by-step explanation:
The statement is true: it is generally incorrect to use the phrase "illegal contract" because if an agreement is illegal, the courts do not recognize it as a contract and the agreement is void. Contracts are based on property rights, allowing individuals to enter into agreements for the use of their property. Legal systems enforce these contractual rights to ensure that the terms of agreements, like the example of a patient-surgeon employment agreement, are fulfilled. A skilled surgeon expects to be paid for the services rendered. If not paid, this failure constitutes property theft by the patient. Enforcement of legal contracts is crucial for the smooth operation of businesses and for economic growth.