A Contract Must Be Found to Violate a Specific Statute

question 81

True/False

A contract must be found to violate a specific statute in order for the contract to be void due to illegal subject matter.

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Definitions:

Blanket Lien

A lien that gives the lienor the entitlement to take possession of any or all of the lienee's real and personal property to satisfy a debt.

Chattel Mortgage Agreement

An arrangement where a loan is secured by moveable personal property, which remains in the possession of the borrower.

Trust Receipt

A document issued by a bank to a buyer who has received merchandise but not yet paid for it, acknowledging that the buyer holds the goods in trust for the bank until payment is made.

Revolving-Credit Agreement

A financial agreement permitting a business or person to lend, pay back, and re-lend funds up to an approved borrowing limit.