A Contract Deemed Illegal When It Is Formed Will Be

question 5

Multiple Choice

A contract deemed illegal when it is formed will be:

• A) Valid and enforceable.
• B) Valid but unenforceable.
• C) Valid but voidable.
• D) Void and unenforceable.

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Definitions:

Accord And Satisfaction

A legal settlement where a debtor offers something different than originally agreed upon, and if accepted, the debt is considered settled.

Sufficient Consideration

The concept in contract law that something of value, which is mutually agreed upon by the parties involved, must be exchanged for a contract to be legally binding.

Illusory Agreement

A contract or agreement that appears to be binding but lacks the necessary elements to enforce it, often because terms are too vague or one party has the option not to perform.

Monetary Value

The economic worth assigned to goods, services, or assets in terms of currency.