ABSTRACT

This chapter deals with situations where otherwise valid contracts are unenforceable because they are deemed to involve ‘illegality’, or are otherwise contrary to public policy. The following issues are discussed:

■ The reasons why illegal contracts are unenforceable. ‘Public policy’ is the central issue – but underlying reasons involve ‘deterrence’ and maintaining the integrity of the legal process (that is, not allowing it to be used to enforce illegal arrangements).

■ Categories of illegality: ■ Contracts to commit crimes or torts. These are always illegal. ■ Contracts contrary to professional regulations (for example, Solicitors’ Practice