BLW 1001 Lecture Notes - Lecture 15: Quasi-Contract, Usury, Fiduciary

• School: St. John's University
• Department: BLW - BUSINESS LAW
• Course: BLW 1001
• Professor: Boland- De Vito

Document Summary

An otherwise valid contract is unenforceable if its performance is illegal or contrary to the public interest. The public welfare is more important than the right to bargain freely. Courts presume parties wanted a legal result and all doubts are resolved in favor of legality when interpreting agreements. It calls for behavior that violates a statute or common law rule. It is contrary to a general rule of public policy. Courts take a hands off position to illegal contracts and won"t enforce contracts. Parties are left as the court finds them. A party to an illegal agreement cannot sue for breach of contract, recover consideration given to the other party, or recover in quasi contract for benefits conferred. Courts don"t get involved in order to protect the public (not because they want to punish parties to an illegal contract. ) Courts sometimes allow recovery if parties to an illegal contract were ignorant to facts making the contract illegal.