Contract Law - Void and Illegal Contracts

What this page is about: In contract law, there are several classes of contracts which, though perfect regarding form, agreement and consideration, are not given full effect because they offend against the policy of the law.

There are several classes of contracts which, though perfect regarding form1, agreement2 and consideration3, are not given full effect because they offend against the policy of the law4. Some contracts may be illegal in the sense that they involve the commission of a legal wrong, whether by statute5 or the common law6, or because they offend against fundamental principles of order or morality7. Less objectionable contracts may be simply void8 by common law9 or statute10.

In respect of certain contracts invalidated under the above principles it's not absolutely clear whether they are illegal or void11; but the distinction must be made, because there are differences between illegal and void contracts in respect of related agreements12, severability13 and recovery of property transferred or money paid under such contracts14.

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