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 is void because it involves actions disallowed by law.
The contract can be enforced if Alex modifies the device to comply with laws.
The contract is enforceable because both parties agreed to the terms.
The contract is enforceable for components of the device that meet manufacturing standards.
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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What does it mean for a contract to be void due to illegality?
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What are some examples of contracts that could be considered void due to illegal activities?
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What does it mean for a contract to violate public policy?