Contracts
What happens to a Rhode Island real estate contract if it is found to have an illegal purpose?
AThe illegal portion is severed and the rest is enforceable
BThe entire contract is void and unenforceable✓ Correct
CThe contract is voidable at either party's option
DOnly the courts can decide whether the contract is enforceable
Explanation
A contract with an illegal purpose (such as a contract to purchase property for illegal activity) is void—it has no legal effect and cannot be enforced by either party.
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