Contracts are the foundation of many business and personal relationships. However, a contract that violates the law is considered illegal and unenforceable. One type of illegality is known as common law illegality, which occurs when a contract is contrary to public policy or good morals.
The Principle of Legality
The principle of legality requires that contracts comply with the law. This means that the terms of the contract cannot violate any existing laws or regulations. If a contract is found to be illegal, it is generally considered void, meaning it has no legal effect.
Common Law Illegality
Common law illegality refers to contracts that are deemed illegal based on general legal principles, rather than specific statutes. These principles are rooted in the Constitution and reflect the values and interests of society.
Categories of Common Law Illegality
There are several categories of common law illegality:
- Contracts Affecting Justice: These contracts interfere with the administration of justice or undermine the legal system. Examples include contracts that involve bribery, perjury, or obstruction of justice.
- Contracts Contrary to Public Policy: These contracts are considered harmful to the public interest or violate fundamental principles of morality. Examples include contracts that promote illegal activities, such as drug trafficking or money laundering.
- Contracts Restraining Trade: These contracts unreasonably restrict competition or limit economic freedom. Examples include agreements between competitors to fix prices or divide markets.
Consequences of Illegality
If a contract is found to be illegal, it is generally unenforceable. This means that neither party can sue the other for breach of contract. However, there are exceptions to this rule. In some cases, the court may sever the illegal part of the contract and enforce the remaining legal parts.
Seeking Legal Advice
If you’re unsure whether a contract is legal or if you believe you’ve been a victim of an illegal contract, it’s essential to seek legal advice. An attorney can assess your situation and help you understand your rights and options.
Don’t Let Illegal Contracts Harm You
Understanding the concept of common law illegality is crucial for protecting your legal rights. By ensuring that your contracts comply with the law, you can avoid potential legal disputes and financial losses.
Contact us today for expert advice.
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