Question

When is an agreement considered illegal?

1) When its formation is a crime or a tort
2) When its performance is a crime or a tort
3) When it is contrary to public policy
4) All of the above

Answer 1

An agreement is considered illegal when its formation is a crime or a tort, its performance is a crime or a tort, or it is contrary to public policy.

Step-by-step explanation:

An agreement is considered illegal when:

1. Its formation is a crime or a tort
2. Its performance is a crime or a tort
3. It is contrary to public policy
4. All of the above

In other words, an agreement can be illegal if the act of forming it or carrying it out is a crime or a tort, or if it goes against established public policy. For example, agreements to commit illegal activities like drug trafficking or fraud would be considered illegal.