GLOSSARY

Illegality definition

What does Illegality mean?

A bar to the enforcement of an otherwise enforceable contract as the courts cannot compel one party to complete an immoral or illegal act even if that act would not have been illegal at the time of contracting.

An agreement of mandate for the performance of an immoral or illegal act cannot be enforced, as no court will enforce an illegal contract or transaction or allow itself to be made the instrument of enforcing obligations alleged to arise out of a contract or transaction that is illegal. Illegality could be considered to be a frustrating event. A contract may be discharged on the happening of some event that renders the continuance of the contract unlawful. Typically, an event likely to render performance unlawful would be the outbreak of war or hostilities where legislation prohibits dealings in affected countries or involving property of the enemy.


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