Oregon 30-Hour Real Estate Law Practice Test

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Study for the Oregon Real Estate Law Test. Explore multiple choice questions and flashcards with hints and explanations. Prepare for success!

Practice this question and more.

A contract for an illegal purpose is classified as what?

Enforceable
Voidable
Void
Valid

The correct answer is: Void

A contract for an illegal purpose is classified as void because it lacks legal effect from the outset. When a contract involves terms or actions that are prohibited by law, it cannot be enforced by either party in a court of law. This classification applies to agreements that violate statutes, public policy, or established laws, meaning that no legal remedies or obligations arise from such a contract. In the context of real estate law, if a contract is formed to carry out an illegal act—such as selling a property on behalf of a party knowing that the sale is based on fraudulent information or is intended for illegal activities—it is not recognized as a valid agreement. As a result, the parties involved cannot seek enforcement or damages related to that contract, reinforcing the principle that the law will not assist in carrying out illegal activities.