Common Law Prohibition of Contracts - Public Policy
Contracts may be prohibited via the common law, on grounds of public policy or morality.
There is a lot of uncertainty in this area, and the when the court can prevent a contract from operating is often unclear.
The courts approach this area of law with a consideration of the common values of society - if the contract breaches common values of soci.
,
Common Law Prohibition of Contracts - Restraint of Trade
As we know, contract law is governed by the principle of contractual freedom, that parties can agree to any contracts and terms they wish.
In some circumstances this freedom may be abused.
An example of such abuse is where a term in a contract prevents somebody from working for somebody else, or trading with somebody else.
To ensure there is a cont.
,
Is an illegal contract enforceable?
The illegal part is thrown out, but the legal parts are enforceable.
There are a number of exceptions to the general rule that courts give no relief to either party to an illegal contract.
The rule may be relaxed in cases where justice would be better served than by following the stricture of hands off.
,
Is an illegal noncompete agreement enforceable?
A six-page employment contract contains two paragraphs of an illegal noncompete agreement.
The illegal part is thrown out, but the legal parts are enforceable.
There are a number of exceptions to the general rule that courts give no relief to either party to an illegal contract.
,
Recovery Under Illegal Contracts
The final assessment to make when considering an illegal contract is whether or not any money or property may be recovered subject to the contract.
,
Statutory Prohibition of Contracts
A contract may be prohibited by a statute either expressly or impliedly.
This is an important distinction to make as whether or not a party may enforce the contract is dependent on this.
,
The Effect of Illegality
The case of Holman v Johnson(1775) 1 Cowp 341 is authority for the general principle of illegality - that the illegal contract will be unenforceable.
However, as we have seen, dependent on the circumstances, one or none of the parties may enforce the contract, and on occasion only part of the contract will be unenforceable.
This section will consid.
,
What is an example of an illegal contract?
Examples of an illegal contract include:
an agreement whose terminology is unclear or an agreement to kill somebody.
The illegality is directly correlated with what is written in the contract and is not influenced by an outside force. ,
When will a court allow no relief from an illegal contract?
There are a number of exceptions to the general rule that courts give no relief to either party to an illegal contract.
The rule may be relaxed in cases where justice would be better served than by following the stricture of hands off.
When, in general, will a court allow a party relief from an illegal contract (or bargain)? .
