A contract may be lawful but failure to perform the contract in the prescribed manner may render the contract illegal.

Question

Quizplus · Accepted Answer

A contract may be legally valid at the time of formation, but if either party fails to perform the contractual obligations in the prescribed manner, the contract may become illegal. For example, a contract for the sale of alcohol to a minor may be legal at the time of formation, but if the seller delivers the alcohol to the minor, they may be held liable for illegal conduct.

A Contract May Be Lawful but Failure to Perform the Contract