ABSTRACT
Introduction The law will prevent an individual from profi ting from illegal behaviour. In certain instances an otherwise valid contract will be unenforceable where it has been declared illegal. In such cases, any money or property transferred under the contract is irretrievable. A distinction is drawn between contracts that involve the commission of a statutory offence and those that are void under the common law as contrary to public policy. See below for the main areas of illegality:
Contracts illegal as formed An illegal contract is void ab initio , meaning that the contract will be treated as though it has never existed. Because the contract never existed, no action can be taken for breach of contract. Thus in Pearce v Brooks [1866] , the owner of a coach of unusual design was unable to recover the cost of hire from a prostitute who had hired it to attract clients.
