To encourage people to cancel illegal contracts,courts will allow a person who rescinds such a contract before any illegal act has been performed to recover any consideration that he has given.

Illegal Contracts

An illegal contract is one that involves activities or terms that are against the law or public policy and is therefore unenforceable in a court of law.

Consideration

In contract law, something of value exchanged between parties, which is essential for the formation of a valid contract.