Unenforceable & illegal contract

Business Law - Unenforceable & Illegal Contract.

1. Unenforceable contract & Illegal contract Asnad.P.A

2. Unenforceable Contract An unenforceable contract is one which cannot be enforced in a court of law on account of some technical defects like want of a written form or stamp. Some unenforceable contract can be enforced in a court of law if the technical defect is removed. Eg; If a document embodying a contract is under stamped, the contract is unenforceable. But the requisite stamp is affixed (if allowed) the contract becomes enforceable.

3. Illegal Contract A contract is illegal if it involves doing something that is a criminal act or civil wrong or against the public good. It is void and avoids connected contracts also. Money paid under illegal contract can’t be recovered. Eg; Selling fire arm to one who doesn’t have a license to hold one.

4. A contract which is otherwise legal might also become illegal if it’s subject matter is to be used for an unlawful purpose. Eg; If a firearm dealer enters into a contract to sell a gun to a person licensed to hold one knowing that he will use it to kill someone, the contract will become illegal. Illegal Contract