If a contract is illegal, may it be voided even if the actors knowingly signed to the terms of the contract?

Question

Osborn

Business

12 April, 03:16

If a contract is illegal, may it be voided even if the actors knowingly signed to the terms of the contract?

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Answers (1)

Know the Answer?

Izabelle Kirby · Answer 1

Answer: Yes, the contract is considered to be voided.

Explanation:

When a contract is void it has no effect so the parties to the contract need not abide by the terms of the contract. Some of the reasons which make a contract void are as follows:

The subject matter of the contract contains illegal content that is against the statutes and the public policy. The terms of contract are not clear or difficult to fulfill. Fraud, misrepresentation of facts or lack of consideration are other factors where the contract becomes void.