ABSTRACT
An additional factor which will need to be considered is whether the restraining clause, if unreasonable as it stands, can be cut down, using the ‘blue pencil’ test, to make it reasonable.
Part (a)
If the courts have found that a contract is unenforceable because it is illegal, they are reluctant to allow it to be used in any way as the basis of a legal action. The basic rule, therefore, is that money or property transferred under an illegal contract cannot be recovered.1 A good example of this principle in operation is Parkinson v College of Ambulance (1925). The plaintiff had made a contribution to a charity on the basis that he would get a knighthood in return. When no such honour was forthcoming, the plaintiff brought an action to recover his contribution. It was held that a contract to purchase a title is illegal and the plaintiff knew this. He could not therefore recover his money.
