illegal contract

illegal contract
a contract may be described as illegal if:
(1) the aim or object of the contract is criminal or immoral;
(2) some specific rule of statute or common law says that it is;
(3) the method of contracting is illegal.
At common law, contracts to commit a crime or promote sexual immorality are illegal. This latter proves difficult in an era when many people live in a state that at the time when many of the authorities were decided was considered immoral. Thus, contracts between cohabitees vary in effect across the Anglo-American world.
Trading with the enemy is contrary to public policy, another head of illegality. Restrictive covenants and contracts in restraint of trade are regarded suspiciously by the courts. There is a general assumption that such contracts are illegal but in modern times their commercial necessity means that the assumption is easily reversed.
Certain gaming contracts are made illegal by statute, and in any event wagering transactions are sponsiones ludicrae and are not enforced.
As the name suggests, the unfair contract terms Act 1977 and other legislation make certain contract terms to have no legal effect.
In New Zealand, under the Illegal Contracts Act 1970, illegality in respect of breach of statute is now determined by the provisions of the enactment and the test is whether the enactment provides for illegality or its object requires illegality. Contracts may be illegal either on creation or on performance. The particularly interesting thing about the Act is that it allows the court very wide power of relief that can be exercised in favour of a party to an illegal contract.

Collins dictionary of law. . 2001.

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Look at other dictionaries:

  • illegal contract — A contract prohibited by statute (e. g. one between traders providing for minimum resale prices) or illegal at common law on the grounds of public policy An illegal contract is totally void, but neither party (unless innocent of the illegality)… …   Big dictionary of business and management

  • illegal contract — agreement which is illegitimate, contract which is not authorized by law …   English contemporary dictionary

  • illegal contract — An agreement contrary to law, morality, or public policy. 17 Am J2d Contr § 156. A contract founded upon a consideration contrary to good morals, against the principles of sound public policy, in fraud, or in contravention of the provisions of… …   Ballentine's law dictionary

  • CONTRACT — (Heb. חוֹזֶה, ḥozeh), in general law theory a legally binding agreement between two or more parties, in terms of which one party undertakes for the benefit of the other to perform or refrain from a certain act. As such, contract is the main… …   Encyclopedia of Judaism

  • contract — con·tract 1 / kän ˌtrakt/ n [Latin contractus from contrahere to draw together, enter into (a relationship or agreement), from com with, together + trahere to draw] 1: an agreement between two or more parties that creates in each party a duty to… …   Law dictionary

  • illegal — il·le·gal /il lē gəl/ adj: contrary to or in violation of a law: illicit unlawful an illegal contract il·le·gal·ly adv Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • illegal — Against or not authorized by law @ illegal contract Contract is illegal where its formation or performance is expressly forbidden by a civil or criminal statute or where penalty is imposed for doing act agreed upon. Hiltpold v. T Shirts Plus, Inc …   Black's law dictionary

  • illegal — Against or not authorized by law @ illegal contract Contract is illegal where its formation or performance is expressly forbidden by a civil or criminal statute or where penalty is imposed for doing act agreed upon. Hiltpold v. T Shirts Plus, Inc …   Black's law dictionary

  • illegal transaction — Something beyond a mere intent to violate the law. An illegal intention, accompanied by an act which is criminal or prohibited by law. Smith v Blachley, 188 Pa 550, 41 A 619. See illegal contract …   Ballentine's law dictionary

  • illegal agreement — See illegal contract …   Ballentine's law dictionary

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