ABSTRACT

The vitiating factor that is considered in this chapter is 'illegality'. There is a variety of ways in which a contract can be deemed to be 'illegal' and thus unenforceable. It focuses on questions that deal with the illegal performance of employment contracts and aspects of the restraint of trade doctrine. One aspect of restraint of trade that is of major practical importance, but is beyond the scope of most contract courses, is the effect of European Law where the restraint applies to cross-border trade within the European Union. All of the questions in the chapter, as is usual in most undergraduate contract examinations, relate to restraints that affect only domestic UK trade. Nor is there any attempt here to deal with the legislative regime contained in the Competition Act 1998. This area, like the European element, is more commonly part of a specialist course on competition law.