ILLEGAL
CONTRACT
A
contract that has the purpose of the violation of law or is contrary
to public
policy.
Such
a contract is generally void and no action can be brought on it as
each party is left to fend for himself against the consequences of
his illegal act. Generally, an illegal contract is void ab
initio.
Such
a contract is generally void
and
no action can be brought on it as each party is left to fend for
himself against the consequences of his/her illegal act. A contract
is an illegal contract if it:
- will result in
a crime
- will commit a tort
- will result in
a fraud
on
a third party
- is against
sexual morality
- is prejudicial
to public safety
- is prejudicial
to the friendly relations with a foreign country.
- is prejudicial
to the administration of justice.
- promotes
corruption in public life
- is designed to
defraud public revenue.
- contravenes an
act of parliament.