What are the two general bases on which a contract can be considered to be illegal?
A) violation of a statute and contrary to public policy
B) violation of a federal statute and violation of a state statute
C) violation of a criminal statute and violation of a civil statute
D) contrary to public policy and having a minor as a party
E) having a minor as a party and having an intoxicated person as a party

Question

Quizplus · Accepted Answer

A contract can be considered illegal if it violates a statute or if it is contrary to public policy. Violation of a federal or state statute may also result in illegality, but it falls under the broader category of violation of a statute. Having a minor or intoxicated person as a party may affect the capacity of the parties to contract, but it does not necessarily make the contract illegal unless there is a violation of a statute or public policy. Violation of criminal or civil statutes may also render a contract illegal, but again, it falls under the broader category of violation of a statute.

What Are the Two General Bases on Which a Contract