ABSTRACT
A transaction is illegal or at least affected by illegality if the transaction or some aspect of it is prohibited by the law. Where the statute contains a provision which expressly prohibits the transaction in question then the transaction is illegal. Often the court will look at the consequences of holding that the statute has impliedly prohibited a transaction before deciding whether this is so. However, public policy must be distinguished from government policy. Issues of public policy usually require the judge to strike a delicate balance between the conflicting duties of safeguarding individual rights and freedoms and that of protecting social institutions and society as a whole from the antisocial acts of individuals. The overall object of the defence of illegality and the forfeiture rule is the protection of the public through deterrence from crime and other illegal conduct. The court may do so of its own motion when the testimony produces evidence of illegality.”
