1. A court will not enforce illegal agreements but will leave the parties where
ID: 1207085 • Letter: 1
Question
1.A court will not enforce illegal agreements but will leave the parties where it finds them. True /False
2.A party to an illegal contract who is fully aware of the contract's illegality can still fully recover damages.True /False
3.A person who rescinds an illegal contract before any illegal act has been performed can usually recover any consideration he has given the other party. True /False
4.A contract of adhesion is not in violation of public policy. True/ False
5.Unequal bargaining power alone is enough to justify the enforceability of a contract. True/ False
6.If part of a divisible contract becomes illegal:
the whole contract is void.
the illegal parts will be removed and the legal parts remain in force.
the whole contract will be unenforceable.
the whole contract is still enforceable
7.This law prohibits charging more than the statutory amount of interest for the use of money.
Rent control laws
Blue laws
Usury laws
Anti-trust laws
.
a.the whole contract is void.
b.the illegal parts will be removed and the legal parts remain in force.
c.the whole contract will be unenforceable.
d.the whole contract is still enforceable
Explanation / Answer
Q6. With respect to a divisible contract, if one part of contract becomes illegal then in that case that illegal portion can be extracted and legal portion or legal part of contract can be enforced.
Hence, the correct answer is option (b).
Q7. It is the Usury laws that prohibits charging more than the statutory amount of interest for the use of money because usury laws specifically targets the practice with respect to charging of exorbitant interest on loan by fixing a maximum amount that can be charged on loan.
Hence, the correct answer is option (c).
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