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Free Books / Society / Law / Sales, Personal Property, Bailments, Carriers, Patents, Copyrights / | ![]() |
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Section 12. Illegality |
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This section is from the book "Popular Law Library Vol5 Sales, Personal Property, Bailments, Carriers, Patents, Copyrights", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
There are various circumstances that may arise, to make a contract of sale void for illegality. But the usual ground is that the subject matter of the sale is of a thing, the sale of which, the law prohibits, or that the purpose of the sale, is to effect that which the law will not countenance, or that the circumstances of the time and place of sale are under legal interdict.
In passing on this phase of the law of sales it is only necessary to keep in mind the general principles of contract law. The fundamental principles are to be applied to the law of sales as they are to any other branch of contract law. In the first place then, if the contract of sale is illegal, the law will not lend its aid to either of the parties to such an agreement. The principle of public policy is this as stated by Lord Mansfield 25 "Ex dolo malo non oritur actio"
20 1 Smith's Leading Case3, 1:
Meeker vs. Wilson., 1 Gall
(U. S.), 419. 21 Hamilton vs. Russell, 1 Craven (U. S.), 309; Thorton vs.
Davenport, 2 I11., 296. 22 Gibson vs. Stevens, 8 How.
(U. S.), 384.
23 Cake vs. Shull, 45 N. J. Eq., 208;
Love vs. Blair, 72 Ind., 281; Polland, vs. Saltonstall, 56 Fed. Rep., 861.
24 Buffinton vs. Curtis, 15 Mass., 528.
No court will lend its aid to a man who founds his cause of action upon an illegal or immoral act. And since no relief may be had under such circumstances from this rule of the law's policy, we hear then, in this connection the application of the saying, potior est conditio defen-dentis. There are to be applied, however, the same rules of exception that are mentioned in all general texts on contract law, as for instance, the rule that the law will come to the relief of one of the parties where a locus poenitentiae remains.26 That is to say, it is the policy of the law to aid in defeating the execution of illegal agreements, and if one party sees fit to withdraw from an incompleted illegal contract, the courts will aid him to do so, by permitting him to recover back what he has parted with, but the locus poententiae, the time of the repentence, must remain. The exception to the rule of law denying relief is also applied in the case where it is shown the parties are not in pari delicto, as for instance, where the party seeking relief was induced by fraud or duress of the other party to enter into the contract.27
Contracts of sale may be illegal because of a rule of the common law,28 or because of a rule of statute,29 or because the law considers the contract of sale to be against public policy.
A contract of sale which is by statute illegal when made, is not rendered valid by repeal of the statute. It is also a general rule that if the sale is valid in the place where made it is valid everywhere, and vice versa.
25 Holman vs. Johnson, 1 Cowp.,
341. 26 Tylers vs. Carlisle, 79 Me., 201, 1 Am. State Rep., 301.
27 Smith vs. Cuff, 6 M. & Sel.. 160. 28 Poplett vs. Stockdale, 2 Car. & P., 198. 29 Quarles vs. State, 55 Ark., 10.
 
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