Law of Contract

INTRODUCTION

The article defines the term illegality of contract. It further identifies and explains the different classes of illegality. In Volsamos Koufou v. Anthon Greenberg, the paper briefly explains the facts, decision and the legal principle of the case. Finally, it attempts to show the distinction between restitution and other remedies under the law of contract.

(A) ILLEGALITY OF CONTRACT AND DIFFERENT CLASSES OF ILLEGALITY

Contract law can be classified, as part of a general law of obligations[->0] (along with tort[->1], unjust enrichment[->2] or restitution[->3]). According to legal scholar Sir John William Salmond[->4], a contract is "an agreement creating and defining the obligations[->5] between two or more parties[->6]"http://en.wikipedia.org/wiki/Contract. Jan. 15, 2009 at 16.01hr or is “an agreement between two or more persons which is intended by them to have legal consequence.”( Livermore, J. (1974). Legal Aspects of Marketing. at p.1 )

Definition of illegality

Illegality of contract refers to “a condition where contracts are either totally or partially unenforceable if the contract as a whole or some part of the contract either:

i. Violates a state or federal statute, for instance agreements for services and fee by someone

who’s supposed to have a license and doesn’t.

ii. Violates public policy as established by judicial precedent.” ( Unknown author from a powerpoint presentation)

Where a contract has been tainted by illegality and lawful provisions exist within it, unless exceptions apply the entire contract will be void ab initio.http://www.gillhams.com/dictionary/442.cfm. July 30, 2009 at 16.04 hr

Different classes of illegality

Illegal contracts can be classified into two categories, namely:-( Oyakhiromen, I., and Ige, A. (2008). The Law of Contract I: Law 233.)

(i) Contracts illegal by Statute:

(a) Contracts involving betting (Gaming Act 1845-1892)

(b) Contract of Money Lending

(c) Contracts...