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Illegality

A.

Courts will also void agreements that are valid from the perspective of contract law, but are otherwise in violation of public policy (illegal contracts).

B.

Criminal sanctions are a more effective way to handle illegal agreements.

C.

Claims for restitution are usually precluded, but sometimes allowed if:

1.
The claimant is not in part delicto (equally blameworthy) with the defendant, or

2.
The claimant is in locus poenitentiae (withdrew before consummation of the illegal bargain).

D. Remitter’s Liability

A mere agent or depository of the proceeds of an illegal transaction is not permitted to assert the defense of illegality in an action to recover the proceeds by a party to the illegal transaction.

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