Contracts
In New York, a real estate contract that contains an illegal provision is typically:
AEntirely void and unenforceable in all respects
BEnforceable except for the illegal provision, which is severed from the contract (if the provision is not so central that the contract fails without it)✓ Correct
CVoidable at the option of the party harmed by the illegal provision
DAutomatically reformed by a court to remove the illegal provision
Explanation
Under New York law, if a contract contains an illegal provision but the rest of the contract can stand without it, a court may 'sever' the illegal clause and enforce the remaining provisions. This is the doctrine of severability. However, if the illegal provision is so central to the agreement that the contract cannot be performed without it, the entire contract may be void.
Related New York Contracts Questions
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