Thursday, August 14, 2014

If a contract is considered illegal if the object of the contract is illegal?

If a contract is considered illegal if the object of the contract is illegal., then would an oral agreement be void if it was based on a fraudulent contract?

Example, A applies for a mortgage loan and lies on the application for more favorable terms. And enters into a partnership agreement with B to use B's money as consideration with promise of shared ownership. B discovers the fraud and wants to void the agreement as the legal object is illegal. Can B void the partnership agreement?

Read more: If a contract is considered illegal if the object of the contract is illegal?