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 ?
The NAB alleged that the former minister, the director general and others were involved in awarding illegal contracts of the youth festivals held in 2011 and 2012.
Approver Waseem Ahmad recorded his statement before judicial magistrate stating that former provincial sports minister Rana Mashhood gave illegal contracts in the festival.
The national exchequer suffered loss worth billions of rupees owing to illegal contracts.' The Pakistan Muslim-League (Nawaz) leader earlier appeared thrice before of the NAB during the inquiry.
The former chief minister was charged with awarding illegal contracts to his favorite firm.
An accountability court has on Tuesday decided to indict former Prime Minister Yousaf Raza Gillani in illegal contracts case.
ISLAMABAD -- The Islamabad High Court (IHC) on Tuesday granted interim to the Pakistan Peoples Party (PPP) Co-chairman Asif Ali Zardari in the National Accountability Bureau's (NAB) eighth inquiry related to illegal contracts.
According to the NAB officials, the officers of Sindh government gave illegal contracts to Harish and Company and Omni Group.
Kanaan indicated that the Court of Audit was now responsible to settle on the illegal contracts. "We will hold the contravening political power responsible and we will name the contravening side," he stressed.
The 13 persons who were nominated by NAB were accused of getting illegal contracts from Sindh government, paying kickbacks and purchasing property by using fake accounts.
KARACHI -- Sindh High Court (SHC) on Wednesday expressed annoyance at National Accountability Bureau (NAB) prosecutor for having lack of information in the case related to illegal contracts, misuse of powers and massive corruption in Federal Urdu University of Art, Science and Technology (FUUAST).
In an affidavit, DCI investigating officer Clement Marubu says Danson Muchemi and Robert Muna entered into numerous illegal contracts with the National Health Insurance Fund management.
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.