When one party uses fraud to induce another party to enter into an illegal bargain,the second party will be allowed to recover for the performance or its value.

Question

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When fraud is used to induce someone to enter into an illegal contract, the law generally allows the innocent party to recover for the performance or its value. This is because the court will not enforce an illegal contract, but recognizes that the innocent party should not be left without a remedy if they were misled by fraud.

When One Party Uses Fraud to Induce Another Party to Enter