An illegal agreement is a contract that violates the law and is therefore unenforceable. These agreements are void ab initio, meaning that they are considered void from the outset and have no legal effect. In this article, we will explore the concept of an illegal agreement and provide an example to further understand the topic.
An illegal agreement can be either explicit or implicit. An explicit illegal agreement is one in which the parties knowingly and intentionally agree to do something that is illegal. For example, if two individuals agree to traffic illegal drugs, this would be an explicit illegal agreement. On the other hand, an implicit illegal agreement arises when the parties agree to carry out a lawful agreement in an unlawful manner. For instance, if two parties agree to pay a bribe to secure a contract, this would be an implicit illegal agreement.
It`s important to note that not all agreements that are detrimental to society are considered illegal. Agreements that violate public policy are generally classified as illegal agreements. Public policy refers to the principles or goals that underlie the laws and regulations of a particular society or jurisdiction. These principles are meant to protect the welfare of the public, therefore, an agreement that undermines those principles would be considered illegal.
An example of an illegal agreement that violates public policy would be a contract that prohibits employees from starting their own businesses for a certain period of time after leaving their employer, even if the employee is not working in the same field or industry as their former employer. This type of agreement is known as a non-compete clause and is often found in employment contracts. However, if the non-compete clause is too restrictive, it can violate public policy and be considered illegal.
In conclusion, an illegal agreement is a contract that violates the law and is therefore unenforceable. There are two types of illegal agreements, explicit and implicit, and the latter often involves a lawful agreement being carried out in an unlawful manner. While agreements that are detrimental to society are not always considered illegal, those that violate public policy are generally classified as such. It`s crucial to understand the consequences of entering into an illegal agreement, as it can lead to serious legal and financial repercussions.