Illegality Flashcards
What are the exceptions to the unenforceability of illegal contracts?
Justifiable Ignorance of the Facts-When one party has no reason to know that the contract is illegal.
Members of Protected Classes- When there is a statute meant to protect a certain class of people, a member of that class can enforce a contract in violation of that statute even though the other party cannot.
Withdrawal From a Legal Agreement- If the illegal part of a bargain has not yet been performed, the party rendering performance can withdraw from the contract and recover the performance or its value.
SEVERABLE, OR DIVISIBLE CONTRACTS- If a contract is divisible into legal and illegal portions, a court may enforce the legal portion but not the illegal one, so long as the illegal portion does not affect the essence of the bargain.
