Alex agrees to sell a device to Morgan for $8,000. After the agreement, Morgan discovers that producing the device involves actions disallowed by law. Which of the following best describes the enforceability of their contract?
The contract can be enforced if Alex modifies the device to comply with laws.
The contract is enforceable for components of the device that meet manufacturing standards.
The contract is enforceable because both parties agreed to the terms.
The contract is void because it involves actions disallowed by law.
The contract is void because it involves actions disallowed by law, which violates public policy. Contracts based on illegal activities are not enforceable.
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Why are contracts involving illegal activities unenforceable?
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What is the difference between a void and voidable contract?
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Can a contract be modified to remove illegal terms and remain enforceable?
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