Multiple choice

In case of illegal agreements, the collateral agreements are

  1. valid

  2. void

  3. voidable

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Collateral agreements to illegal agreements are void ab initio. Under contract law, when the main agreement is illegal, any transaction or agreement arising from or supporting it (collateral) is also tainted and unenforceable.