Some states have changed the in pari delicto rule and permit the less-at-fault party to recover restitution of the consideration they paid under an illegal contact from the more-at-fault party.

Question

Quizplus · Accepted Answer

Some states have indeed moved away from the traditional in pari delicto rule, which barred either party in an illegal contract from receiving restitution. Instead, these states now allow the less-at-fault party to seek restitution of the consideration they paid, even if the contract was illegal, fraudulent, or otherwise unenforceable. This represents a departure from the previous rule, which effectively left both parties without recourse in cases of illegal contracts.

Some States Have Changed the in Pari Delicto Rule and Permit