Contracts

In Minnesota, a purchase agreement that violates the Fair Housing Act is:

AEnforceable if both parties agreed voluntarily
BVoid as contrary to law and public policy✓ Correct
COnly voidable by the discriminated party
DValid if signed before the Fair Housing Act was enacted

Explanation

A contract that violates law or public policy is void—it has no legal effect and cannot be enforced. A real estate contract with a racially restrictive covenant or one that facilitates housing discrimination is void as contrary to the Fair Housing Act and public policy. Such covenants were declared unenforceable by the U.S. Supreme Court in Shelley v. Kraemer (1948).

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