Faith has a hauling business.  She entered into a two-year contract with Thrifty Consignment Inc. to haul unwanted items from Thrifty's store every Tuesday evening and deliver to the local dump.  Faith would haul all unwanted items to the dump that would accept dumping of personal items without charge.  The dump was for the sole use of residents of the jurisdiction for dumping personal items, and not for dumping items from businesses.

After three months of Faith's dumping, the dump discovered that she was using the dump for business items rather than personal items.  Faith was advised that she was violating the law and issued a citation.

Consequently, Faith told Thrifty that she would no longer perform under their contract.  Faith soon learned that Thrifty knew it was illegal to dump commercial items at the local dump and that Thrifty had hired Faith to do the dumping to avoid a citation for Thrifty.   Thrifty, however, had never disclosed to Faith that dumping commercial items at the local dump was illegal. 

A.  Analyze and explain whether Thrifty Consignment can enforce the contract with Faith and why or why not.

B.  Thrifty owed Faith $2,000.00 for the work that she had done before she learned   the contract was illegal. 

Can Faith recover under a restitution cause of action?   Explain your answer with reference to the three exceptions that allow for restitution in this scenario.   

Answer rating: 100% (QA)

A The contract between Faith and Thrifty Consignment may be unenforceable due to illegality Faith was engaged in illegal activities by using the local ... View the full answer