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Void and illegal contracts (Contracts illegal at common law (a contract to…
Void and illegal contracts
Contracts
illegal
at common law
a contract to commit a legal wrong
Napier v National Business Agency
he parties had made this bargain knowing well that the expenses figure was a sham figure and that by making the agreement in that form they were intending to defeat the proper claims of the Revenue. The contract was therefore against public policy and unenforceable.
contracts promoting sexual immorality
Pearce v Brooks
The jury having found that the defendant hired it for the purpose of prostitution and that the plaintiff knew that this was her purpose, the contract was unenforceable as being for for that unlawful purpose
contracts which corrupt public life
Parkinson v College of Ambulance
It is illegal for a person to enter into a contract to buy a title
contracts which are prejudicial to the safety of the country
Foster v Driscoll
- contract which benefits the enemy in time of war will be illegal
contracts prejudicial to the administration of justice
Contracts
illegal
by statute
The Resale Prices Act 1976
any collective agreements regulating the price at which goods are sold are unlawful
Contracts
void
at common law
contracts to oust the jurisdiction of the courts
Bennett v Bennett
it is not possible to block access to the courts completely
contracts prejudicial to the status of marriage
any contract where a person agrees not to marry anyone at all is void
pre-nuptual agreement - the courts will look at the overall fairness of the agreement and whether both parties entered into the agreement of their own free will. Both parties must be fully informed about the nature of the agreement, and there must have been full disclosure.
Radmacher v Granatino
Contracts
void
by statute
Cope v Rowland
where a contract is expressly prohibited by statute then it will not be enforced by the courts
Consequences of void and illegal contracts
if the contract is illegal, the agreement is void and unenforceable. Any money paid or property handed over cannot be recovered.
Courts apply the maxim ex turpi cause non oritur action (no action can arise from a base cause
Kiriri Cotton Co v Dewani
if both parties are not equally guilty, the court may allow the innocent party to recover
Contracts in restraint of trade
between employer and employee
courts will not uphold agreements restricting the ability of employees to work for another employer or on his own account after ceasing the employment.
employer is entitled to protect its trade secrets or other confidential information
Forster v Suggett
,
Fitch v Dews
in deciding whether a clause is reasonable, the court will take into account;
area of restraint, length of restraint, nature of employment
on a vendor of a business
must only be sufficient to protect the business sold and the time period must be reasonable
Nordenfelt v Maxim Nordenelt Guns and Ammunition Co
,
British Reinforced Concrete Co Ltd v Scheff
solus agreements
business agrees to receive all its supplies from one particular supplier
the length of the restriction should be reasonable
Esso Petroleum v Harpers Garage