Which of the following best describes an illegal contract?
A) A contract that is illegal in the way in which it was performed
B) A contract that results in civil litigation
C) A contract that is illegal at the time it was formed
D) A contract that lacks consensus, consideration, capacity and intention
E) A contract that has been breached by one of the parties

Question

Quizplus · Accepted Answer

An illegal contract is one that violates a law or public policy at the time it was formed. This could include agreements to commit illegal acts, contracts that involve fraud or misrepresentation, or contracts that are against public policy, such as contracts to commit prostitution or to sell illegal drugs. Contracts that are performed illegally (choice A), result in civil litigation (choice B), lack essential elements (choice D), or are breached by one of the parties (choice E) may also be problematic, but they are not necessarily illegal contracts.

Which of the Following Best Describes an Illegal Contract