Final answer:
STOLI has been found to be in violation of the contractual element of legal purpose.
Step-by-step explanation:
STOLI, which stands for Stranger-Originated Life Insurance, has been found to be in violation of the contractual element of legal purpose.
The legal purpose element of a contract requires that the agreement be for a lawful objective or consideration, and STOLI contracts are typically considered to be against public policy due to their speculative nature.
STOLI contracts involve a third party purchasing a life insurance policy on the life of an individual with the intention of selling the policy to a life settlement company or investor in the future, creating an insurable interest solely for the purpose of profiting from the death of the insured.