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18 November, 16:10

Suppose that Jack and Hal and Sophia enter into a contract for the sale of the restaurant. Hal and Sophia inventory the restaurant and they find that there was a case of bald eagle meat in the refrigerator, which is illegal to possess. This was unknown to them at the time of the agreement. Which of the following is true? A. The contract would likely be voidable by Jack.

B. The contract would be void since the parties are in pari delicto.

C. The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.

D. The contract would be void due to illegality.

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Answers (2)
  1. 18 November, 17:29
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    C. The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.

    Explanation:

    Selling American eagle meat is totally illegal and should not be overlooked. In the case shown in the question above, the existence of this illegality would allow the contract to cut the illegal part of the contract and allow for the contract for the sale of the business to be enforced.

    It is important to note that a contract is a legal bond between two parties. This bond is regulated by national justice and must be within all laws in force in the country for it to be valid and efficient, that is, a contract is a legal document and requires, for its validity, compliance with legal requirements.
  2. 18 November, 17:35
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    Answer: C. The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.

    Explanation: The part of the contract which was unknown and illegal (bald eagle meat in refrigerator) would be expunged from the agreement as they weren't a part of the illegal case. Thus the parties involved in the illegal case prior to the agreement should held responsible and respond to the case accordingly. Once the case is expunged, the sale agreement or contract (a formal written legal document stating the binding rights between two or more parties, to avoid violation of rights and serves as tenable evidence in any event of breach) can be enforced.
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