Question

In: Economics

An illegal drug manufacturer and an illegal drug dealer enter into an oral contract in which...

An illegal drug manufacturer and an illegal drug dealer enter into an oral contract in which the manufacturer will sell the drugs to the drug dealer for a set price. The manufacturer changes his mind and sells his product to another dealer. Could the dealer enforce the oral contract? Why or why not

Solutions

Expert Solution

No, there is no breach of a contract. Because there is no valid contract happened in this case. There is no contract enforcing in this case as the contract is void ab initio.


There is a common assumption that if one party offered and other party accepted then they entered into a contract. Although there is more essentials to form a valid contract.
A contract without offer, acceptance, consideration, intention to create legal relations, legality and capacity, certainty are considered as a void contract and it has no enforceability.

In this case there was an oral contract with the illegal manufacturer and illegal drug dealer to sell the drug on a fixed price. But the contract is invalid from the beginning because the contract was made for a illegal purpose. Legality was absent in this contract.

An oral contract can be claimed in some cases but not in this case. Here the contract itself was void and a person cannot enforce or claim for a void contract.


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