This section is from the book "Handbook Of The Law Of Contracts", by Wm. L. Clark, Jr.. Also available from Amazon: Handbook of the law of contracts.
147. | |
14S. | |
149. | |
• 150. | Breach of Rules of Common Law. |
151. | Breach of Statute - Constitutional Law. |
152. | Prohibition by Statute. |
153. | |
154-155. | |
156. | |
157. | Nonofficial Corruption. |
158-160. | Perversion or Obstruction of Justice. |
161. | |
162. | Agreements of Immoral Tendency. |
163. | Agreements Tending to Fraud and Breach of Trust. |
164. | |
165. | |
166-169. | |
170-172. | Unlawful Combinations - Monopolies, Trusts, etc. |
173-174. | |
175. | Effect of Illegality - Agreements Partly Illegal. |
176-177. | |
178-180. | |
181. | |
182-185. | |
186. | Conflict of Laws - In Space, |
187. | In Time. |
147. An agreement is not enforceable at law, and therefore does not result in a contract, if its object is illegal.
We come now to deal with the only remaining element in the formation of a valid contract - the legality of the matter or object of the agreement. To result in a contract, an agreement must create an obligation; and it does not create an obligation if it is such that the courts cannot enforce it. An agreement, therefore, which is illegal or unlawful, is in fact no contract at all, though it is often spoken of as an illegal contract.
As a rule the law does not interfere with the freedom of persons to enter into contracts, but some limitations are imposed. Certain objects are forbidden, and though all the other elements necessary to the formation of a valid contract may be present, yet if one of these forbidden objects is contemplated by the parties, the courts will not enforce their agreement. The object makes the agreement unlawful.1
 
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