Illegal Contracts … bite size

Contracts can be illegal in many different ways.

1. They can be illegal as formed

This is when the terms of the contract themselves would involve an illegal act, such as a breach of the criminal law.

2. They can be illegal as performed

This is where the terms of the contract are legal but they are carried out in an illegal manner. This would occur where the performance of a contract requires a licence.

3. They can be illegal where it involves conduct which is contrary to the interests of public policy.