Illegality

Restraint of Trade

Overview Contracts in “restraint of trade” are void. This is because it is a fundamental principle, that a person should be free to use his labour or exercise his trade whether as employee or trader. Restraints are permissible where the agreement not to trade is for an objectively justifiable reason and extends no wider than necessary.… Read the rest

Restraint Issues

Employment Contracts and Restraint of Trade Restraint of trade clauses are commonly found in employment contracts and in contracts for the sale of a business. The practical effect of a restraint of trade covenant is to restrain competition. … Read the rest

Public Policy

Contracts against Public Policy There are certain types of contracts which the courts will not enforce on public policy grounds, notwithstanding that they do not involve illegality in the sense of being criminal or a breach of civil obligations.… Read the rest

General

Illegal Contracts The general position is that the law enforces agreements, which have been freely entered. It does usually not regulate the terms and conditions of agreements. Some agreements are not enforceable because they promote an illegal purpose, contemplate or involve unlawful performance or because they are deemed to be against public policy.… Read the rest

Gambling

Gaming Gaming and wagering contracts are generally void. The legislation provides that a contract to recover money or winnings is unenforceable. No legal action lies to recover money alleged to be won or paid upon a wager or which has been deposited as security for it.… Read the rest

Enforcement

Enforcement The basic rule is that the courts will not enforce an illegal contract or a contract affected or “tainted” by illegality. Damages, injunctions, and orders for performance will not be granted. Restitution will not be available.… Read the rest

Against Justice

Contracts undermining the Criminal Justice System Contracts which undermine the system of justice are unenforceable. Contracts prejudicial to the administration of justice are not enforced. A contract not to make a criminal complaint is invalid. The public interest in punishing crime requires that private parties may not settle criminal complaints.… Read the rest