Legality
Lawfulness of object: the object of a contract can be described as the purpose for which it come into being. If the object of a contract is illegal the contract is void and unenforceable.
Contracts of this type fall into three categories:
1. Contract illegal at common law. This includes:
i) Contracts where the object is commission of a crime or tort, for example an agreement to rob a bank.
ii) Contracts depending for their performance on sexually immoral acts.
iii) Contract contrary to public policy.
2. Contracts made illegal by statue law. Parliament passes more and more statues each day and some of these may affect private contracts.
3. Contracts void by statue. For example, a person cannot enforce a wagering contract and hence cannot sue to obtain winnings from illegal gambling.
Example:
Upfill Vs. Wright (1911)
The plaintiff had rented one of his flats to a woman whom he knew would use it for immoral purposes. He sued for the unpaid rent.
His action failed. Whilst the express object of the contract – a tenancy – was legal, the landlord knew that it was being used for immoral activities. Consequently, the contract was illegal on public policy grounds and would not be enforced.
(Greene, 2013)
Contracts of this type fall into three categories:
1. Contract illegal at common law. This includes:
i) Contracts where the object is commission of a crime or tort, for example an agreement to rob a bank.
ii) Contracts depending for their performance on sexually immoral acts.
iii) Contract contrary to public policy.
2. Contracts made illegal by statue law. Parliament passes more and more statues each day and some of these may affect private contracts.
3. Contracts void by statue. For example, a person cannot enforce a wagering contract and hence cannot sue to obtain winnings from illegal gambling.
Example:
Upfill Vs. Wright (1911)
The plaintiff had rented one of his flats to a woman whom he knew would use it for immoral purposes. He sued for the unpaid rent.
His action failed. Whilst the express object of the contract – a tenancy – was legal, the landlord knew that it was being used for immoral activities. Consequently, the contract was illegal on public policy grounds and would not be enforced.
(Greene, 2013)