Business Law - Unenforceable & Illegal Contract.

1. UNENFORCEABLE CONTRACT
&
ILLEGAL CONTRACT
Asnad.P.A

2. UNENFORCEABLE CONTRACT

An unenforceable contract is one which cannot be
enforced in a court of law on account of some
technical defects like want of a written form or
stamp.

Some unenforceable contract can be enforced in a
court of law if the technical defect is removed.

Eg; If a document embodying a contract is under
stamped, the contract is unenforceable. But the
requisite stamp is affixed (if allowed) the contract
becomes enforceable.

3. ILLEGAL CONTRACT

A contract is illegal if it involves doing something
that is a criminal act or civil wrong or against the
public good.

It is void and avoids connected contracts also.

Money paid
recovered.

Eg; Selling fire arm to one who doesn’t have a
license to hold one.
under
illegal
contract
can’t
be

4. ILLEGAL CONTRACT

A contract which is otherwise legal might also
become illegal if it’s subject matter is to be used for
an unlawful purpose.

Eg; If a firearm dealer enters into a contract to sell a
gun to a person licensed to hold one knowing that
he will use it to kill someone, the contract will
become illegal.