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What Is the General Rule to Decide upon a Partially Illegal Agreement/Contract Quizlet

When it comes to legal agreements and contracts, there are certain rules that must be followed in order to ensure that they are valid and enforceable. In some cases, however, parts of an agreement may be considered illegal or unenforceable. So, what is the general rule to decide upon a partially illegal agreement or contract? Let`s explore this topic further.

Firstly, it`s important to understand what constitutes an illegal agreement or contract. Essentially, any agreement that involves an illegal act or violates public policy is considered illegal. This could include contracts for illegal activities like drug trafficking or prostitution, as well as agreements that promote discrimination or violate labor laws.

In some cases, an agreement may contain both legal and illegal provisions. So, what should you do if you find yourself in this situation? The general rule is that if the illegal provision is a minor part of the agreement and can be separated from the rest of the contract without affecting its overall purpose or meaning, then the rest of the contract may still be enforceable.

For example, let`s say you are entering into a contract to purchase a car from a private seller. The agreement includes a provision that requires you to make a payment under the table in order to avoid paying sales tax. While this provision is illegal, the rest of the contract outlining the terms of the sale is still valid. In this case, you may be able to strike out the illegal provision and still move forward with the purchase of the car.

On the other hand, if the illegal provision is a major part of the agreement and cannot be separated from the rest of the contract without fundamentally altering its meaning or purpose, then the entire agreement may be considered unenforceable. This is particularly true if the illegal provision goes to the heart of the agreement, such as an agreement to engage in illegal activity.

It`s important to note that the rules regarding partially illegal agreements can vary by jurisdiction and the specific circumstances of each case. Therefore, it`s always wise to consult with a legal professional to ensure that you are making the best decisions regarding your legal agreements and contracts.

In conclusion, the general rule for deciding upon a partially illegal agreement or contract is to determine whether the illegal provision can be separated from the rest of the contract without affecting its overall purpose or meaning. If it is a minor provision, the rest of the contract may still be enforceable after striking out the illegal provision. However, if the illegal provision is a major part of the agreement and cannot be separated without fundamentally altering its meaning or purpose, then the entire agreement may be considered unenforceable.

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