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Example of Illegal Contract

An illegal contract is a contract which breaches principles of law, or the fundamental principles of law of contract.

A contact isn't considered legal if:

  • The terms or purpose of the contract breaches laws
  • The purpose of a contract is to obstruct legal action
  • A party doesn't act in good faith
  • The contract was entered into under duress
  • The contract is deemed to be illegal by a court
  • The contract constitutes restraint of trade of either party.

Examples of Illegal Contract:

The contract isn't enforceable, because it requires you to blow up the Houses of Parliament.
The contract is void, because the rowboat is valued at $4,000,000
http://www.law.gmu.edu/assets/subsites/gmulawreview/files/17-2/BADAWI.pdf
http://en.wikipedia.org/wiki/Illegal_agreement
         


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