ABSTRACT
A contract may be complete and perfect as offer, acceptance and consideration are concerned, but may still fail because either it infringes a common law rule or a statutory provision, or it is regarded as ‘contrary to public policy’. Examples of void contracts are wagering and gaming contracts, lotteries (other than ‘small’, ‘private’ or ‘society’ lotteries and the National Lottery), certain prize competitions, contracts in restraint of trade, agreements to oust the jurisdiction of the court and agreements prejudicial to the married state. Illegal contracts include agreements to commit an unlawful act, agreements prejudicial to the interest of the state and contracts to promote sexual immorality. Whether a contract is void or illegal is important, as the consequences flowing from a void contract are different from the consequences arising from an illegal contract. Money or property transferred under a void contract may be recovered in a quasi-contractual or other action, whereas, in respect of an illegal contract, there is a general rule that no legal action will be permitted in order to enforce it, or to enable damages to be obtained or to allow for the recovery of property transferred or money paid under the contract.
