Ali enters into a contract with Billy's Brewpub to be a bartender. Ali is not aware that Billy's does not have a liquor license. Under these circumstances, it is most likely that Ali:
A) can recover the wages only for emotional distress.
B) can recover the wages for bartending before he learned of the violation.
C) cannot recover the wages for bartending because the license and his employment are not related.
D) cannot recover any of his wages as illegality makes the contract void.

Question

Quizplus · Accepted Answer

The courts allow recovery if one of the parties to a contract is unaware of the fact that the contract is illegal due to a violation of a special statute regulating the other party's business. In this scenario, Ali is not aware that Billy's does not have a liquor license.

Ali Enters into a Contract with Billy's Brewpub to Be