A contract is made illegal if the requirements of the valid contract are not fulfilled. A valid contract is the one in which all the three requirements of offer, acceptance, and consideration are fulfilled by both parties. Furthermore, the parties are legally capable of making the contract.
A contract is actually an agreement which is formed between two parties. Both of them fulfil this for each other. For example, a contract between parties for the selling and purchasing of a property is completed when the party selling it offers to sell it and the other promises to give consideration for that property.
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If the person who is offering or accepting the offer refuses to sell it or to purchase it, he is legally liable for not fulfilling the contract. Thus, the other party may bring a legal action against him for breach of contract.
Illegal contract subject matter:
A contract or agreement is made illegal if the main subject matter of that contract is against the law or related to a violation of the law. It is necessary to note that the illegality of the contract is directly related to the contract in question and not the other thing.
A contract that is illegal cannot be enforced by the court because of its illegality. And the contract becomes void or unenforceable. This means that the contract never existed because of its unenforceability, and in this case, the party breaching the contract will not be liable for any remedies.
Illegal contracts make it clear that neither the party suing the other party for breaching the contract will be entertained with damages, nor will the party breaching the contract be liable for breach. The court can make an illegal contract legal by taking out the parts that make it illegal.
Violation of the law
There are certain cases in which a contract is made between two parties regarding a violation of the law. The contract that is made between them actually violates the law of that state.
For example, a contract is made between parties to sell and purchase drugs in Pakistan. It is illegal to sell and buy drugs. This contract is illegal because it violates the law.
Another example of human trafficking, prostitution, or gambling is the violation of the law.
A contract between two people that allows the hiring of underage workers
All of the following contracts are unlawful and violate the law.
Against public policy:
Public policy is the policies of the state that are formed to protect the public at large. If a contract is lawful but violates state policy, it is illegal.
For example, a contract between the employee and employer in which the employee’s labor amounts to slavery. It is not a violation of the law, but of the state’s public policy. So, the court rules that this kind of contract is illegal.
If no such topic is supplied, the court will not enforce the contract if its requirements and contents violate state law.
Attorney’s Role in Illegal Contract:
An attorney is being appointed by either party or both parties if they think that the contract involves any illegal provisions. To protect themselves from any irregularity, an attorney must be appointed. The attorney will also assist create, evaluate, and verify the contract to ensure proper enforcement.