In Which of the Following Situations Would the Effect of Illegality

question 52

Multiple Choice

In which of the following situations would the effect of illegality be an exception?

• A) when both parties of an illegal contract execute their agreements
• B) when both parties of an illegal contract are considered in pari delicto
• C) when person is justifiably ignorant of the law or fact that made the contract illegal
• D) when a person completes his act of an illegal contract but is not paid for his consideration

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Balance Sheet

is a financial statement that provides a snapshot of a company's financial condition at a specific time, detailing assets, liabilities, and owners' equity.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's stake.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.