If illegality exists, the situation is different. Therefore, even if the purpose of the contract is not expressly mentioned in any of the statutes, a court may treat them as if they were illegal if they created circumstances contrary to public policy. If such a scenario occurs, the court will not apply the contract. A contract is considered an “illegal contract” where the purpose of the contract is for an illegal purpose contrary to the law. On the other hand, a contract concluded solely for the sale of a stack of cards is generally not considered an illegal business. This contract is also applicable if the cards are sold to a known player in a state where gambling is prohibited. Illegality is not necessarily in the text of the treaty. Other common examples of illicit contracts include: contracts for the sale of illicit substances are prohibited by the Narcotics and Psychotropic Substances Act; 1985 is considered illegal when drugs are sold, and then what was mentioned in the law. The party that has suffered losses cannot recover the amount of the contract. On the other hand, non-binding contracts are agreements for which the contract is considered (legally) to have existed, but no recourse is granted. The treaty remains in force.

In employment contracts, knowledge of the facts and the worker`s participation in illegality are minimum requirements for the worker, to which his or her labour rights must be withdrawn. Like any other contract, the employment contract may be tainted in an illegal manner. Traditionally, one of the main areas of illegality in this context was trade restrictions (see post-stop restrictions (restrictive agreements) below). The broker should use the money to bet on the movement of Royal Bank of Scotland shares on the stock exchange, using insider information that was to be obtained: insider trading. It`s a kind of illegal contract by law. In Patel v Mirza (2016), the Supreme Court stated that the factors for assessing illegality and the consequences of it are: in some cases, a part under quantenmeruit can recover the value of the goods or services concluded, even if the contract has been deemed illegal. If, in itself, the services provided were not illegal and one party does not respect its part of the contract, the other party under quantenmeruit may recover for the value it received. If the offence is based on non-payment of services, an applicant should avail himself of Quantum Meruit in order to preserve the right to re-acquisition. The consequences of illegality include the possibilities of: although an offence may be classified as illegal, it is not illegal in the legal sense. Contracts that are illegal for public policy reasons – also known as common law illegality – can be tainted with illegality in an infinite number of ways. If the contract between the parties is found to be illegal, it is not applicable by the Tribunal. The court will declare that there was no contract between the parties and that the parties “as they are” left at the time of the offence.

Parties who have suffered the consequences of an illegal contract cannot recover the damage, because the contract does not exist in the eyes of the law. The courts have no effect on illegal transactions or the rights that flow from them and lack private rights if the applicant: the restoration of the position in which they were before the illegal agreement met the legal considerations that are due to the doctrine of illegality in this case.