Contracts

Under Minnesota law, a real estate contract that includes an illegal provision (such as a racially restrictive covenant) is:

ACompletely void and unenforceable
BVoidable at the buyer's option
CEnforceable but the illegal provision is severed✓ Correct
DValid if both parties agreed to it

Explanation

Under Minnesota law, illegal provisions in contracts (like racially restrictive covenants) are void and unenforceable, but the rest of the contract remains valid through the legal doctrine of severability. Minnesota has specific laws addressing racially restrictive covenants in property records, allowing property owners to discharge such covenants through a court process.

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