What is the effect of illegality in a contract?

Illegality in a contract can have a huge effect, especially in the state of Virginia. If a contract is deemed illegal, then it is considered unenforceable, meaning that neither party can legally enforce the terms of the agreement. The most common reason for a contract to be deemed illegal is if it’s in violation of a criminal statute or public policy. This could mean that the contract requires either party to engage in illegal activities, or that the contract itself is illegal. For example, a contract to purchase illegal drugs would be classified as illegal. Another way a contract can be declared illegal is if the terms of the agreement contradict each other. For instance, a contract may state that a buyer cannot return the purchased item and then turn around and require the buyer to return it. Aside from the illegality, this type of contract renders the agreement unenforceable, as the parties cannot both be legally bound to the same terms. Additionally, if a contract is determined to be too unfair, it may also be deemed illegal. This usually applies only to contracts that are between two very unequal parties, such as an employer and employee, where the employee has very limited bargaining power and the employer is the dominant party. In short, the effect of illegality in a contract, especially in Virginia, is that it renders the agreement unenforceable. This means that neither party can legally enforce the terms of the agreement and it will not be upheld in a court of law.

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What is the effect of illegality in a contract?

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