Illegal Agreement: Understanding the Basics and Examples

An illegal agreement is an agreement that violates any law, or is against public policy, morality, or justice. These agreements are not binding in the court of law, and any consequences arising from such agreements are not enforceable. An illegal agreement is a serious offence that can attract criminal charges and civil liability.

Examples of Illegal Agreement

1. Agreements Contrary to Public Policy

Agreements that contravene public policy, are considered illegal. Public policy is the principle that guides the legal system to promote the public interest and welfare of the society. An agreement that goes against public policy is void and unenforceable.

For instance, an agreement that restrains a person from exercising his or her legal rights, such as the right to seek legal redress, is against public policy. In addition, agreements that promote illegal activities, such as drug trafficking, prostitution, or gambling are illegal because they violate public policy.

2. Agreements Against Statutes

Agreements that violate the law are illegal. For instance, an agreement to commit a crime, such as theft, fraud, or murder, is against the law and therefore, illegal. Similarly, an agreement that goes against the provisions of a statue, such as the minimum wage law, consumer protection law, or environmental protection law, is also illegal.

3. Agreements with Minors

Agreements with minors (people under 18 years old) are generally voidable, meaning they can choose to either enforce or void the agreement. However, some agreements with minors are illegal. For example, an agreement that involves a minor in an illegal activity, such as drug trafficking or prostitution, is illegal and can attract criminal charges.

4. Non-Compete Agreements

Non-compete agreements are agreements that prohibit a person from working for a competitor of his or her employer. Non-compete agreements are illegal in some states, such as California, where such agreements are not enforceable, except in very limited circumstances. Non-compete agreements can be illegal because they restrict a person`s right to work, which is a fundamental right protected by the law.

Conclusion

Illegal agreements are not only unenforceable, but they can attract severe legal consequences, including criminal charges and civil liability. Therefore, businesses and individuals must ensure that their agreements do not violate any law, and are in compliance with public policy, morality, and justice. It is important to consult with a lawyer before entering into any agreements to avoid potential illegalities.