What is the effect of illegality in a contract?

Illegality in a contract is when the provisions of the contract are illegal or violate a law, making the contract unenforceable in a court of law. In Washington, the effect of illegality in a contract is that the contract is void and unable to be enforced by either party. This is because it is the policy of the state to not enforce contracts that are illegal and would be harmful to the public. If an illegal contract is found to be unenforceable, any money or property that has been exchanged between the two parties involved can be returned to where it came from if the court finds that this is best for both parties. If the contract contains an illegal provision but is still enforceable, then the court will usually remove that illegal part, and the rest of the contract remains in effect. If a court determines that the contract is entirely illegal, then the court will reject it and the parties involved will not be able to get any of their money or property back. When determining whether a contract is legal or not, courts will look at all of the details involved including the wording, the circumstances that led to the contract, and the intent of the parties. If the court finds an illegal provision in the contract, then it is not enforceable and both parties are not required to comply with it. In general, it is important for both parties to read and understand the contract before signing it in order to help make sure that it does not contain any illegal provisions.

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