Question

46. Which of the following are recoverable if a contract is found to be legally void?
Answers:
A. Consideration already paid
B. Damages for breach
C. Both A and B
D. Neither A or B

47. Contracts where the principal objective is illegal are generally considered voidable.
Answers:
True
False

48. Ignorance of fact or special regulation is an exception to the general rule that illegal contracts are void applies only if no immoral behavior or threat to public welfare occurred.
Answers:
True
False

49. Knowingly entering into an illegal contract to avoid liability on a later breach of contract action arising under the original contract because of the original illegality is a viable legal defense.
Answers:
True
False

Answer 1

1. Both A and B

If a contract is found to be legally void, then both consideration already paid and damages for breach are recoverable in nature because under legally void contract, breach damages and paid considerations are recoverable in nature.

2. True

Contracts where the principal objective is illegal are considered voidable since illegal principal objective leads to dangerous situation and immoral practice and hence such contracts are considered voidable.

3. True

Ignorance of fact or special regulation is an exception to the general rule that illegal contracts are void applies only if no immoral behavior or threat to public welfare occurred. Such ignorance which does not pose any threat to public welfare anc is harmless in nature is considered as exception to the general rule.

4. False

Knowingly entering into an illegal contract to avoid liability on a later breach of contract action arising under the original contract because of the original illegality is not a viable legal defense. This is because knowingly entering into illegal contract is considered as an offense and is not viable in nature and is not a viable legal defense.