Crime as In Illegal Contract
Illegal Contracts violating statute or common law 3
Agreement to commit a civil wrong or crime 3
Contract to commit corruption 4
Agreements promoting prostitution 4
Contracts obstructing administration of justice 4
Agreements prejudicial to safety of public 4
Manner of Performance of contract is unlawful 4
Void Agreements due to public policy 5
Effects of Illegality 5
There is zero tolerance in contract law towards illegal, criminal or unfair transaction, and towards such methods which threaten the freedom of consent. The common law ...view middle of the document...
Mostly, courts refuse to uphold such contracts. However, it is discretion of the adjudicating authority to uphold or deny the enforcement.
There are many factors rendering a contract illegal. Generally, a contract is deemed to be illegal in which one or some acts are agreed upon to be performed by one of or all of the contracting parties; and such act or acts are against the statute or public policy. The paper attempts to discuss important criminal and civil factors making a contract illegal, know what are the effects of illegality are and what will be the remedial measures available to innocent contracting party.
Illegal Contracts violating statute or common law
Some contracts are prohibited by the provision of statute expressly and other are considered illegal on the ground of public policy.
Agreement to commit a civil wrong or crime
The contracts of which ultimate object is to commit a criminal act is void and not to be enforced. In case the contract is made to carry out such acts which are against the civil laws, the contracts will also be illegal and not enforceable. Such contracts in many instances are itself crime. However, in case, the party or parties alleged to be involved in such illegality is or are ignorant of the fact that the act or acts are against the law, they may not be held liable. If one contracting party is familiar the illegality of contract, only the innocent contracting party will be considered entitled to depend on the contract as it had been observed in Clay v Yates (1856) 1 H&N 73 (vanuatu, 2013).
Contract to commit corruption
In case two or more person enter into a contract for sale of honorary title or public job or anything violating the meritocracy and principles, the contract will be considered illegal as it was held in Parkinson v College of Ambulance (1925) (lawtalk, 2013) son . These practices are against the society as whole as they promote corruption. Furthermore, they also injure interest of those who meet the merit policy.
Agreements promoting prostitution
Such contracts are illegal in which two or more parties agree upon procuring women for prostitution. It does not matter whether the contracting parties make an agreement to do such immoral performance directly or indirectly. If their act or acts have been proved to be promoting the sexual immorality in the society, even through indirect means, are enough to make a contract illegal. Determination of such indirect means depend solely on the discretion of the court. However in case contracting parties are ignorant of illegality of immoral action, they may not be held in liable (lawtalk, 2013).
Contracts obstructing administration of justice
Contracts in which parties agree upon performance of such acts which are against the administration of justice or causing abuse of process are illegal. For instance, preparing fake document, false testimony, hiding truth or cheating a presiding officer of a court etc all acts make a contract...