illegal contract

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illegal contract

a contract maybe described as illegal if the aim or object of the contract is criminal or immoral; some specific rule of statute or common law says that it is; the method of contracting is illegal. At common law, contracts to commit a crime or promote sexual immorality are illegal. This latter proves difficult in an era when many people live in a state that at the time when many of the authorities were decided was considered immoral. Thus, contracts between cohabitees vary in effect across the Anglo-American world. Trading with the enemy is contrary to public policy, another head of illegality. Restrictive covenants and contracts in restraint of trade are regarded suspiciously by the courts. There is a general assumption that such contracts are illegal but in modern times their commercial necessity means that the assumption is easily reversed. Included are pacta de quota litis, or ‘agreements to share the proceeds of litigation’, a rule that prevents lawyers in the UK taking percentage fees. Certain gaming contracts that are made used to be illegal by statute but the Gambling Act 2005 provides that the fact that a contract relates to gambling will not affect its enforcement.

In all these cases the rule ex turpi causa non oritur actio applies: ‘an action does not arise out of an illegal cause.’ This can be harsh if property or money has been transferred contrary to some obscure and technical statute and the parties are not equally blameworthy (in pari delicto). The law of restitution maybe argued in such cases. As the name suggests, the UNFAIR CONTRACT TERMS Act 1977 and other related legislation mitigates the effect of certain terms and this is done by making certain contract terms illegal.

References in periodicals archive ?
Another inquiry was authorised against officers and officials of Sindh Sports and Youth Affairs Department on the allegation of misappropriation in the development budget and giving illegal contracts in various schemes in violation of rules.
KARACHI -- An accountability court has indicted former petroleum minister Dr Asim Hussain and eight others in a reference regarding embezzlement of Rs17 billion in award of illegal contracts of five gas fields in Sindh to Jamshoro Joint Venture Limited (JJVL).
In the reference, Dr Asim Hussain has been accused of committing corruption of Rs17 billion in the award of illegal contracts for five gas fields in Sindh to Jamshoro Joint Venture Limited (JJVL).
Ahmed, a prominent business tycoon, as well as former managing director of OGDCL Basharat Mirza also facing corruption reference for allegedly awarding illegal contracts to JJVL for the extraction of LPG (Liquefied Petroleum Gas) and NGL (Natural Gas Liquids).
She further added that the decision on Panama Case matter by the Supreme Court of Pakistan will eliminate, corruption, misuse of power, illegal contracts, commission, bribery, theft, smuggling and other evils from the Country for ever.
This detailed, descriptive narrative for students and scholars investigates a less-known aspect of European colonialism in Africa: quasi-legal or illegal contracts created by European business men and companies who wanted to control their own empires in Africa outside of traditional European governments, during the period 1882-1885.
Dr Asim Hussain and others are charged with inflicting financial loss of Rs 17 billion on national exchequer by awarding illegal contracts to a private company .
One of the two corruption cases alleges the ex-minister of embezzlement during his tenure in authority at Sui Northern Gas Pipelines Limited (SNGPL) while other of money laundering, granting illegal contracts to companies and selling government's land.
Concurrently, discussing accusations that the Telecoms Ministry signed illegal contracts with Ogero, Harb explained that the Court of Accounts appraised the contracts.
The MortgageFinance Fund (MFF) headMai Abdel Hamid said the size of registered real estate units in Egypt is only comprised of 10% to 15% of the entire Egyptian real estate wealth due to tedious procedures, illegal contracts, problems with registration in notary offices, and the difficulty in paying fees.
Moreover the last year a report was published claiming that some of tradespersons of Turkey annually benefit of illegal contracts with Daesh terrorist groups.
In so doing, the Florida court ignored longstanding United States Supreme Court precedent stating that courts can neither enforce illegal contracts nor enforce arbitral awards that would condone illegal conduct, and added to the already well-developed split of authority concerning whether any judicially-created grounds for vacatur survive this Court's decision in Hall St.