Illegality Contract Law Notes: Understanding the Basics

The concept of illegality in contract law can be quite confusing and overwhelming for many individuals. It is a complicated area of law that requires a deep understanding of various legal principles and concepts. In this article, we will explore the basics of illegality in contract law notes. We will look at what it means, how it affects the enforceability of a contract, and the possible consequences of entering into an illegal contract.

What is Illegality in Contract Law?

Illegality, in the context of contract law, refers to a contract or an agreement that is contrary to the law. This means that the contract involves an act or a subject matter that is illegal or prohibited by the law. It could also mean that the contract is against public policy or morality.

For example, if two individuals enter into a contract to sell drugs, that contract would be illegal because the sale of drugs is prohibited by law. Similarly, if an employer enters into a contract with an employee to pay them less than the minimum wage, that contract would be illegal because it violates employment laws.

Effect on Enforceability

The effect of illegality on the enforceability of a contract varies depending on the nature and extent of the illegality. In some cases, an illegal contract may be completely unenforceable, meaning that neither party can enforce it in a court of law. In other cases, the contract may be partially enforceable, meaning that some parts of the contract may be enforced while others cannot.

For example, if two individuals enter into a contract to sell drugs, that contract would be completely unenforceable because it is illegal. However, if an employer enters into a contract with an employee to pay them less than the minimum wage, the contract may be partially enforceable. The employee may be able to enforce parts of the contract that are not against the law, such as the hours they worked, but not the part that involves payment below the minimum wage.

Possible Consequences

Entering into an illegal contract can have serious consequences for both parties involved. If a court determines that a contract is illegal, it may declare the entire contract void and unenforceable. This means that neither party can recover damages or enforce the terms of the contract.

In some cases, entering into an illegal contract can also result in criminal charges. For example, if two individuals enter into a contract to sell drugs, they may be charged with drug trafficking, which is a criminal offence.

Conclusion

Illegality is a complex area of contract law that requires a deep understanding of various legal principles and concepts. It is crucial for individuals to understand the consequences of entering into an illegal contract, as it can result in serious legal and financial consequences. When in doubt, it is always best to seek legal advice before entering into any type of contract to ensure that it is legal and enforceable.