Legality of Contracts
This quiz will test your knowledge of the legality of contracts.
Questions
Which of the following is not a requirement for a valid contract?
- Agreement
- Consideration
- Capacity
- Legality
A contract is illegal if it:
- Is against public policy
- Is prohibited by statute
- Is contrary to good morals
- All of the above
Which of the following is an example of a contract that is illegal because it is against public policy?
- A contract to sell drugs
- A contract to commit a crime
- A contract to restrain trade
- All of the above
Which of the following is an example of a contract that is illegal because it is prohibited by statute?
- A contract to sell alcohol to a minor
- A contract to gamble
- A contract to work without a license
- All of the above
Which of the following is an example of a contract that is illegal because it is contrary to good morals?
- A contract to sell a human organ
- A contract to engage in prostitution
- A contract to commit adultery
- All of the above
What is the effect of an illegal contract?
- The contract is void
- The contract is voidable
- The contract is unenforceable
- All of the above
Who can challenge the validity of an illegal contract?
- The parties to the contract
- The government
- Third parties who are injured by the contract
- All of the above
What is the remedy for an illegal contract?
- Rescission
- Restitution
- Damages
- All of the above
What is the purpose of the illegality doctrine?
- To protect the public from harmful contracts
- To promote fair dealing and good morals
- To deter people from entering into illegal contracts
- All of the above
Is a contract to sell a kidney illegal?
- Yes
- No
Is a contract to gamble on the outcome of a sporting event illegal?
- Yes
- No
Is a contract to work as a prostitute illegal?
- Yes
- No
Is a contract to sell alcohol to a minor illegal?
- Yes
- No
Is a contract to work without a license illegal?
- Yes
- No
Is a contract to restrain trade illegal?
- Yes
- No