In which of the following situations would the effect of illegality be an exception?
A) when both parties of an illegal contract execute their agreements
B) when both parties of an illegal contract are considered in pari delicto
C) when a party is justifiably ignorant of the law or fact that made the contract illegal
D) when a party completes his act of an illegal contract but has not received consideration

Question

Quizplus · Accepted Answer

In some cases, the effect of illegality may be an exception if a party is justifiably ignorant of the law or fact that made the contract illegal. This is known as the doctrine of "ignorance of the law is an excuse." However, in situations A and B, the parties have knowingly entered into an illegal contract and are therefore in breach of the law. In situation D, while the party may not have received consideration, they still knowingly engaged in an illegal contract, and therefore cannot claim an exception.

In Which of the Following Situations Would the Effect of Illegality