An illegal agreement is an agreement that is against the law or public policy. It is a contract that lacks legality and thus cannot be upheld by the courts. In this article, we will explain what an illegal agreement is, how it differs from a void agreement, and the consequences of engaging in an illegal agreement.
What is an illegal agreement?
An illegal agreement is an agreement that involves illegal activities or transactions that are against the law or public policy. These types of agreements are not legally enforceable, as they violate the legal principles of contract law. Some common examples of illegal agreements include agreements to commit crimes, agreements to sell illegal drugs or contraband, and agreements to engage in illegal gambling activities.
It is important to note that the illegality of an agreement can result from both the subject matter and the purpose of that agreement. For example, an agreement to steal a car is illegal because the stealing of a car is illegal. Conversely, an agreement to purchase a car is not illegal, but an agreement to use the car to flee the scene of a crime would be illegal.
How does an illegal agreement differ from a void agreement?
An illegal agreement is different from a void agreement in that a void agreement is one that is not legally enforceable from the beginning. Void agreements are considered null and void and do not have any legal effect. An illegal agreement, on the other hand, is one that is illegal and not enforceable because it violates the law or public policy.
For example, a contract to provide illegal services, such as prostitution, is both illegal and void. In contrast, a contract that is void ab initio, like a contract to do an impossible task, is unenforceable from inception.
What are the consequences of engaging in an illegal agreement?
Engaging in an illegal agreement can have severe consequences, including criminal and civil penalties. People who knowingly enter into an illegal agreement can be prosecuted criminally, fined, and imprisoned. In addition to criminal penalties, people who enter into illegal agreements can be subject to civil liability. If a contract violates applicable laws or regulations, a party may be entitled to seek damages or a remedy under the law.
In addition, if a party to an illegal agreement suffers losses due to the agreement`s illegality, it cannot recover damages from the other party. The court will not enforce the illegal agreement, and the parties will be left to bear their own losses resulting from their illegal activities.
In conclusion, an illegal agreement is a contract that lacks legality because it violates the law or public policy. These types of agreements come with severe consequences, including criminal and civil penalties. If you are ever presented with an agreement that involves any illegal activity, it is crucial to seek legal advice before taking any action to avoid running afoul of the law.