Edna Carroll v. Agnes Beardon case brief

Edna Carroll v. Agnes Beardon; (Sup. Ct. of MO, 1963); CB 384; Notes 47

Ks that make illegal conduct possible, but not the actual illegal conduct itself are enforceable

• Facts: Deal over house of prostitution. D argues that since the sale was in furtherance of something illegal the court should not enforce. K itself was for sale of property.
• Holding: mere knowledge that the premises will be used for unlawful purpose does not make one a participant in that purpose.
• Rule: Ks that make illegal conduct possible, but not the actual illegal conduct itself, are often enforceable.
• Commentary: If party of the sale was for a house of prostitution (customer lists, etc), this would be unenforceable b/c it would be sale of illegal business enterprise. This was a sale of something distinct from the business. What if the court had found the K unenforceable? The D would have gotten the business fro basically free. Why should we let purchaser keep the property without paying for it? Does that discourage illegal activity?