Jesse makes an offer to Ike,and Ike accepts;then the state legislature passes a law that makes performance of the contract illegal.What is the effect of the new statute on the contract?
A) The contract is severed;any portions that are legal must still be performed and any portions that have been made illegal must not be performed.
B) The statute has no effect on the contract.
C) The statute acts as a condition on the contract.
D) The statute discharges the obligations of both parties under the contract.

Question

Quizplus · Accepted Answer

The new statute makes performance of the contract illegal, which means that both parties are discharged from their obligations under the contract. The contract is essentially voided by the new law.

Jesse Makes an Offer to Ike,and Ike Accepts;then the State