Illegal agreement

An illegal agreement, under the of, is one that the s will not enforce because the purpose of the agreement is to achieve an illegal end. The illegal end must result from performance of the contract itself. The classic example of such an agreement is a.

However, a contract that requires only legal performance on the part of each party, such as the sale of packs of to a known gambler, where  is illegal, will nonetheless be enforceable. A contract directly linked to the act itself, such as paying off gambling debts (see ), however, will not meet the legal standards of enforceability. Therefore, an employment contract between a  and a  manager, is an example of an illegal agreement and the employee has no valid claim to his anticipated wages if gambling is illegal under that.

In  (1988), the refused to enforce a contract for payment of s used for the purchase of a company that manufactured drug paraphernalia. Although the items sold were not actually illegal, the court refused to enforce the contract for concerns.

In, one cited case of lack of enforceability based on illegality is Royal Bank of Canada v. Newell, 147 D.L.R (4th) 268 (N.S.C.A.), in which a woman forged her husband's signature on 40 s, totalling over $58,000. To protect her from prosecution, her husband signed a letter of intent prepared by the bank in which he agreed to assume "all liability and responsibility" for the forged cheques. However, the agreement was, and was struck down by the courts, because of its essential goal, which was to "stifle a criminal prosecution". Because of the contract's illegality, and as a result voided status, the bank was forced to return the payments made by the husband.

Contracts in are a variety of illegal contracts and generally will not be enforced unless they are reasonable in the interests of the contracting parties and the public.

Contracts in restraint of trade if proved to be reasonable can be enforced. When restraint is placed on an ex-employee, the court will consider the geographical limits, what the employee knows and the extent of the duration. Restraint imposed on a vendor of business must be reasonable and is binding if there is a genuine seal of goodwill. Under common law, contracts to are legal. Sole supplier ("solus") agreements are legal if reasonable. Contracts which contravene public policy are void.