Illegal Contract - Definition - Law Dictionary Home Dictionary Definition illegal-contract

Definition :

Illegal contract, an agreement to do any act forbidden either (1) by the Common Law, such as agreements to commit a crime or tort, or as for rent of lodging let for prostitution, Jennings v. Brown, (1842) 9 M&W 496; or for price of indecent picture, Fores v. Johnes. (1802) 4 Esp 97; or in prejudice to the administration of justice, Windhill Local Board v. Vint, (1890) 45 Ch D 351; or (2) by statute, as by hire of a room for a lecture in contravention of the Blasphemy Act, Cowam v. Milbourn, (1867) LR 2 Ex 230; but see Re Bowman, (1915) 2 Ch 447, or a contract by a servant of a local authority with such authority, in contravention of s. 193 of the (English) Public Health Act, 1875; also contracts in unreasonable restraint of trade; general restraint of marriage; trading with the enemy; compounding felonies; maintenance or champerty, etc. A breach of promise of marriage by a married man pending divorce after decree nisi may be actionable, Fender v. Mildmay, (1937) 53 TLR 885. Illegality super-vening by act or change in the law terminates the contract. See Leake or Chitty on Contracts; Odgers on the Common Law. An illegal contract cannot be sued on. See maxim: IN PARI DELICTO MELIOR EST CONDITIO POSSIDENTIS; and CONTRACT; IMPOSSIBILITY.