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What happens if a party breaches an illegal contract?

April 26, 2017breaches contract happens illegal party

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What happens if a party breaches an illegal contract?

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If a contract is found to be illegal, it is unenforceable and as if it was never formed. The court will usually leave the parties “as they are” at the time of breach. Neither party can recover losses, because the court is basically saying, “No contract exists”.