Types Of Unlawful Agreement

The breach of contract gives rise to civil action: a right to compensation and a number of other remedies in appropriate cases. Illegal behaviour – illegal because it violates the terms of the contract – leads to the offence. This violation in turn creates the right of the innocent party to compensate the offence (and other remedies, depending on the nature and seriousness of the offence). On the other hand, non-binding contracts are agreements for which the contract is considered (legally) to have existed, but no recourse is granted. The treaty remains in force. There are at least 3 possible results of illegal agreements. An illegal contract prevents contract claims when a party attempts to enforce an agreement that prohibits the law. Illegality is first and foremost used to defend rights. For example, the production or sale of excised goods is prohibited by the excise law, except with a state license.

The sale of unlicensed spirits is therefore prohibited by the Excise Act and is therefore illegal. A contract entered into in violation of a legal prohibition is null and void, whether it is an explicit or implied prohibition. In summary, all agreements that involve a violation of laws protecting or promoting the public interest are invalid. However, for an agreement to be declared illegal and non-aeig, because of fraudulent use or consideration, fraud must be unequivocally proven and cannot be based on mere suspicion and presumption. The purpose or purpose of the contract is to obtain an illegal purpose. The illicit objective may be known to one or both parties. As in the first place, contracts between unmarried persons for cohabitation were deemed unenforceable and illegal for the promotion of immorality. To Fender v. John-Mildmay[2] it was found that an immoral promise between a single man and an unmarried woman to live together without marriage could not be imposed by law. Such an agreement was deemed illegal because of immorality. But over time, the law has changed, and now unmarried men and women have permission to live together and maintain a domestic relationship without marrying.

But “extramarital” cohabitation is still considered immoral and therefore unenforceable. Under the Contracts Act, one of the main reasons for the validity of a contract is objectivity and consideration. The contract is based on the “object” that provides the main purpose of the formation of the contract between the parties. It is therefore very important that a contract be valid and applicable so that it is legal and not rejected in any way by law. Even if the recital, which is an important part of a treaty, is again very important that the consideration agreed between the parties is legal and not illegal. Any agreement whose purpose and consideration are contrary to a law and which contravenes the provisions of a law is then considered illegal or null and void. But with the change of time and social norms came a time when the courts no longer felt the need to limit the scope of immoral contracts to sexual immorality.