What is the doctrine of in pari delicto with reference to contracts?
A) It is a situation in which both parties are considered equally at fault in an illegal contract.
B) It is a situation where one party has unknowingly signed a contract to commit crimes.
C) It gives minors the right to disaffirm a contract.
D) It is a special exemption right to circumvent usury laws.

Question

Quizplus · Accepted Answer

The doctrine of in pari delicto basically means that both parties are equally at fault in an illegal contract. Therefore, neither party can enforce the contract or seek damages for any loss incurred. It is often referred to as the "clean hands doctrine," which means that a party who has engaged in illegal or unethical behavior cannot seek legal remedies in court.

What Is the Doctrine of in Pari Delicto with Reference