Illegal Contract

In one sentence

A contract whose purpose or performance violates the law.

Plain English

An illegal contract is an agreement to do something that the law forbids. This covers contracts to commit crimes, contracts that violate regulations, or contracts that ask someone to do something against public policy. Courts will not enforce these contracts, and both parties are generally left where they are—neither can sue the other for breach. The law treats these contracts as void from the start.

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Example

A drug dealer and a customer agree in writing that the dealer will sell cocaine for $500. When the dealer doesn't deliver, the customer can't sue for breach of contract because the entire agreement is illegal.

Used in a sentence

“The court refused to enforce the illegal contract because it required the defendant to help conceal stolen property.”

Related terms

Void Contract

A contract that has no legal effect from the moment it's made.

Breach of Contract

Failure to do what a contract requires, without a valid legal excuse.

Public Policy

Contracts that violate society's fundamental interests or values are unenforceable.

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Mutual Assent

Both parties agree to the same contract terms at the same time.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.