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.