What Is Meant by Illegal Agreement

As a professional, I am pleased to provide you with this informative article on "what is meant by illegal agreement."

An illegal agreement refers to a contract or agreement between two or more parties that is unlawful or against the law. Such agreements are not legally enforceable, and any party to such an agreement cannot rely on the courts to enforce the terms of the agreement.

The main reason why illegal agreements are unenforceable is that they are against public policy. Public policy refers to the moral or ethical values that a community holds and what is seen as acceptable or unacceptable behavior. An agreement that violates public policy is considered illegal and, therefore, unenforceable.

Examples of illegal agreements include agreements that involve illegal activities such as drug trafficking, prostitution, and money laundering. Contracts that are discriminatory, contracts that involve fraud, and agreements that restrict competition are also illegal.

In some cases, parties to illegal agreements may be held liable for their actions. For example, parties that engage in illegal activities may be subject to criminal charges and could face fines or imprisonment. Additionally, parties that knowingly enter into an illegal agreement may be held liable for any damages that result from the agreement.

It is essential to note that not all illegal agreements are criminal offenses. Some agreements may be against public policy but may not be criminal. For example, a contract that provides for the sale of illegal drugs is both against public policy and a criminal offense. However, a contract that restricts competition in a particular market may only be against public policy and not a criminal offense.

In conclusion, an illegal agreement is an unenforceable contract that is against public policy or the law. Parties that knowingly enter into such contracts could face criminal charges, fines, or imprisonment. It is important to ensure that any agreement you enter into is legal and does not violate any laws or public policies.