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Legal Principle: A right of action cannot arise out of an illegal activity. Factual Situation: X borrows 50,000 from Y for the purpose of smuggling goods. Y knows of the purpose of the loan. Issue: Is this agreement valid? Decision:

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Legal Principle: A right of action cannot arise out of an illegal activity. Factual Situation: X borrows 50,000 from Y for the purpose of smuggling goods. Y knows of the purpose of the loan. Issue: Is this agreement valid? Decision:





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