Carroll v. Beardon
Supreme Court of Montana
381 P.2d 295 (1963)
Relevant factsFree
Edna Carroll (plaintiff) sold real property to Agnes Beardon (defendant) for $42,000, financed through installment payments; after Beardon made only one payment and defaulted, Carroll sued to foreclose. Beardon defended by arguing the sale contract was unenforceable because Carroll had previously run a house of prostitution on the property and sold it to Beardon knowing Beardon intended to continue that illegal use; the trial court ruled for Carroll, and Beardon appealed.
IssueFree
Whether the defense of illegality is available with respect to a land-sale contract if the seller does not actively participate in the illegal conduct.