Asked by Kaniyah McCluney on Mar 10, 2024
Verified
A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.
Illegal Contract
A contract that is void and unenforceable from the outset because it involves activities that are against the law or public policy.
Restitution
The act of compensating for loss, damage, or injury caused, often involving the return of stolen or lost property to the rightful owner.
Partially Executed
Refers to a contract or agreement where some, but not all, of the required actions have been completed by the parties involved.
- Acquire knowledge about the role of illegality and public policy in determining the enforceability of contracts.
Verified Answer
MR
Michelle RamirezMar 10, 2024
Final Answer :
True
Explanation :
When a party to a contract is unaware of the contract's illegality and has partially executed their obligations, courts may allow them to recover under the principle of restitution to prevent unjust enrichment of the other party. This is because the innocent party is seen as less at fault and deserving of protection.
Learning Objectives
- Acquire knowledge about the role of illegality and public policy in determining the enforceability of contracts.