A party that enters into an illegal contract can recover the considerations given if the party:
A) reports the illegal act to law enforcement after committing it.
B) rescinds the contract before any illegal act has been performed.
C) demonstrates an unequal bargain due to the illegal contract.
D) rescinds the contract immediately after the illegal act has been performed.

Question

Quizplus · Accepted Answer

Public policy is clearly served best by any rule that encourages people not to commit illegal acts. Parties who have fully or partially performed their part of an illegal contract have little incentive to raise the question of illegality if they know that, due to the hands-off approach to illegal contracts, they will be unable to recover what they have given. To encourage such people to cancel illegal agreements, the courts allow one who rescinds the contract before any illegal act has been performed to recover any consideration given.

A Party That Enters into an Illegal Contract Can Recover