When both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract,they have formed a(n) ________ contract.

A) restrictive
B) in pari delicto
C) usurious
D) nondisclosure

An in pari delicto contract is one in which both parties are equally at fault or in the wrong. In other words, they have both entered into an illegal agreement knowingly and willingly, with full knowledge of the operation and effect of their contract. The term "in pari delicto" is derived from Latin and means "in equal fault."