Illegality Contract Law Uk
Illegal contracts are agreements that contravene the law by their terms or purpose, and such agreements are generally unenforceable. Contract law in the UK is an integral part of the legal system that governs the creation and enforcement of agreements between parties. The law recognizes that individuals have the right to enter into agreements, but these agreements must be lawful and not against public policy.
If a contract is illegal, it is void and unenforceable, meaning that neither party has the right to enforce its terms. This is because a contract is a binding agreement and the court`s role is to enforce agreements that are legally valid. The rationale behind the illegality doctrine is that the courts should not be used to enforce illegal conduct or to uphold contracts that are contrary to public policy.
The illegality doctrine covers a broad range of agreements. For example, contracts that involve the commission of a crime or fraud, or that are intended to harm the public or violate public policy, are deemed illegal. Other examples of illegal contracts include those that contravene specific statutes or regulations, such as those relating to consumer protection, competition law, or employment law.
One of the most common examples of an illegal contract is a contract to commit a crime. Such contracts cannot be enforced because they are against public policy and are illegal. Similarly, if parties enter into a contract with the intention of defrauding third parties, such as through a Ponzi scheme or pyramid scheme, then that contract will be illegal.
Another area where illegality may arise is in contracts of employment. For instance, an employment contract that requires an employee to breach a statutory obligation may be deemed illegal. Additionally, any contractual provision that purports to waive an employee’s statutory rights may also be deemed illegal.
In conclusion, the law in the UK prohibits agreements that contravene the law and public policy. If a contract is illegal, it is void and unenforceable. Therefore, it is essential that parties entering into any agreement ensure that it is lawful and that it does not violate any statutes, regulations, or public policy. As a professional, it is important to note that it is always advisable to seek legal advice if you are unsure of the legality of a contract.