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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.

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