Unlawful and illegal agreements are essentially contracts or agreements that go against the laws of a particular state or country. Such agreements are considered invalid and unenforceable by the courts.

When it comes to contract law, there are two main types of unlawful and illegal agreements: those that violate statutory law and those that violate public policy.

Statutory Law Violations

Statutory law refers to laws that are created by the government and enforced by the courts. These laws are designed to protect the public and ensure that certain activities are conducted in a specific way.

For example, let`s say that a company enters into a contract with an individual to sell them illegal drugs. This agreement is considered unlawful because the sale of drugs is prohibited by statutory law.

Similarly, if a company hires an individual to perform work that is illegal, such as hacking into a competitor`s computer system, the contract would be considered unlawful.

Public Policy Violations

Public policy violations, on the other hand, occur when a contract goes against the fundamental principles of a particular state or country. These agreements are deemed unenforceable because they are considered harmful to society.

For instance, if a company tries to enforce a contract that forces an employee to waive their legal rights, such as the right to file a lawsuit, the agreement is considered illegal because it violates public policy.

Other examples of unlawful agreements that violate public policy include agreements that encourage or promote illegal behavior, agreements that are designed to defraud or deceive individuals, and agreements that restrict an individual`s freedom or rights.

Consequences of Unlawful and Illegal Agreements

Unlawful and illegal agreements have significant consequences. Not only are they unenforceable by the courts, but they can also lead to legal consequences for the parties involved.

Individuals who participate in unlawful or illegal agreements can face fines, penalties, and even criminal charges. Companies that engage in such agreements can face lawsuits, regulatory action, and damage to their reputation.

In conclusion, when entering into a contract, it is essential to ensure that the agreement complies with the laws and principles of the state or country. Unlawful and illegal agreements are not only unenforceable but can also lead to significant legal and financial consequences. As a result, it is critical to seek legal advice before entering into any agreement to avoid the possibility of violating statutory law or public policy.