This Article offers a unified theory that explains why courts, despite the compelling argument for deterrence, should not apply the no-effect rule of illegal contracts uniformly and why they should vary the type of relief according to the factual setting. It posits that a graduated relief structure will maximize efficient deterrence. An efficient deterrence scheme will preserve limited personal, judicial and societal resources without burdening legitimate transactions.
Public Policy, Illegality, No Effect, Contracts, No-effect Rule, Illegal Contracts, Graduated Relief Structure, Deterrence
Place of Original Publication
Iowa Law Review
74 Iowa Law Review 115 (1988)
Kostritsky, Juliet P., "Illegal Contacts and Efficient Deterrence: A Study in Modern Contract Theory" (2006). Faculty Publications. 466.