BCL – L1 – SA – Q32 – Contract Law

Thomas and Jeremiah entered a contract whereby Thomas agreed to sell Jeremiah $1,000 worth of heroin, an illegal substance. This is an example of a:

A.  Quasi contract.

B.  Void contract.

C.  Voidable contract.

D.  Secondary party beneficiary contract.

B

Explanation:

A contract for an illegal purpose, such as the sale of heroin, is void because it violates public policy and legal statutes. A void contract has no legal effect and cannot be enforced by either party. Option A (quasi contract) is incorrect, as quasi contracts are implied by law to prevent unjust enrichment, not applicable here. Option C (voidable contract) is incorrect, as voidable contracts are valid but can be canceled by one party, which does not apply to illegal agreements. Option D (secondary party beneficiary contract) is irrelevant, as it involves third-party rights, not illegal activities. The answer “B” aligns with the legal principle that contracts for illegal purposes are void.