In: Economics
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
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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