When it comes to contract law, illegality can be a serious issue. In essence, an illegal contract is one that goes against the law or public policies. If any part of a contract is deemed illegal, then the entire contract can be declared void or unenforceable.

At e-law resources, we understand that contract law can be complex. That`s why we`re here to help you navigate the ins and outs of this tricky area. So, let`s take a closer look at illegality in contract law and what it means for you.

What is an illegal contract?

An illegal contract is one that violates the law or public policy. There are a few different types of illegal contracts:

1. Contracts that are contrary to statute

Some contracts are illegal because they go against specific statutes. For example, a contract that requires a person to engage in prostitution would be illegal since prostitution is illegal in most states.

2. Contracts that are contrary to public policy

Other contracts are illegal because they go against public policy. Public policy refers to the beliefs and values of the general public. For instance, a contract between two parties agreeing not to report illegal activities would be against public policy since it encourages illegal behavior.

3. Contracts that involve illegal consideration

Finally, some contracts are illegal because the consideration (i.e., the exchange of something of value) is unlawful. For example, a contract to sell drugs would be illegal since the consideration is an illegal substance.

What happens if a contract is illegal?

If any portion of a contract is deemed illegal, then the entire contract can be declared void or unenforceable. This means that neither party can enforce the terms of the agreement.

However, there are some exceptions to this rule. In some cases, a court may enforce a contract even if it is illegal if doing so would serve the interests of justice. For example, a contract between a drug dealer and a buyer may be enforced if the buyer can prove that they were coerced into making the purchase.

How to avoid illegal contracts

The best way to avoid illegal contracts is to seek legal advice before entering into any agreement. An experienced attorney can review the terms of the contract and ensure that they are legal and enforceable.

Additionally, it`s important to always conduct business in a legal and ethical manner. If any part of a contract appears to be illegal or unethical, it`s best to walk away from the deal.

In conclusion, illegality in contract law can be a serious issue. If any portion of a contract is deemed illegal, then the entire contract can be declared void or unenforceable. To avoid running afoul of the law, it`s important to seek legal advice and conduct business in a legal and ethical manner. At e-law resources, we`re here to help you navigate the complexities of contract law and ensure that your agreements are valid and enforceable.