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Q.

What is Illegal Contract?

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I see you wish to know

what is illegal agreement. Well,

an illegal contract is a contract that is made for an illegal purpose or that violates some specific rule of law. Such contracts are not valid or enforceable, and may involve criminal or immoral acts or objects. An illegal contract is not a contract at all and is null and void.

For example, a contract for murder is an illegal contract because its fulfillment requires the parties to engage in illegal activity.

If you are wondering

what is an illegal lease agreement, then you should know that it is an agreement which is not in compliance with the laid out rules for lease in India. It can be a lease for private property, government property involving one or more parties.

Draft legally valid contracts by senior advocates on NoBroker Read more: What does a Contractor Licence Mean?

 

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0 2022-04-08T18:35:46+00:00

Hi Pal,

I am a legal practitioner. I like providing legal advice to people. However, if you want to know the illegal contract meaning, then let me help you out with this. I hope this answer would help you understand the meaning of the same.

What is illegal contract

A contract is illegal if it entails committing criminal conduct, committing a civil wrong, or acting against the public interest. Selling a firearm to someone who isn't licensed to own one, for example, is unlawful, thus a contract to sell a firearm in these circumstances is also illegal. It is also prohibited to enter into a contract with the intent of forcing the other party to break another legally binding contract that the party has already entered into.

An illegal contract will not be enforced by the courts. In most cases, money paid or property transferred under an illegitimate contract is not recoverable. However, there are certain exceptions.

For example, if a contract is declared invalid by a statute enacted to protect a particular group of people, a member of that group may be entitled to reclaim money paid or property transferred under the contract.

A contract might be considered illegal for any of the following reasons:
  • Lack of capacity: 

If one of the parties lacks the mental capacity to fully comprehend the contract's consequences, such as a senior with dementia, a mentally disabled person, or a tiny kid

  • Illegal purposes:

If a contract is made for the aim of doing unlawful conduct, such as selling narcotics, it is considered illegal

  • Mistaken interpretation: 

When one or both parties have a misunderstanding of the contract's provisions

  • Misrepresentation:

If a contract contains false statements, it is considered misrepresentation and fraud

I conclude my answer here. I hope that this answer would help you in resolving your query about the illegal contract meaning.

Check out NoBroker Legal Services if you need assistance with legal documents.

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