If the object of a contract becomes illegal after the contract is entered into because the government has enacted a statute that makes it unlawful,the parties must still perform their contractual obligations pursuant to the grandfather clause.

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Quizplus · Accepted Answer

If the object of a contract becomes illegal, the contract becomes void and unenforceable. The grandfather clause does not apply in this case as it only protects existing contracts from new laws that make the previously legal activity illegal.

If the Object of a Contract Becomes Illegal After the Contract