Illegal Agreements Definition: Understanding the Basics
Illegal agreements are those that violate the laws of the land. They are not binding on the parties involved and are, therefore, unenforceable in a court of law. These agreements are considered illegal because they involve activities that are prohibited by law, such as fraud, embezzlement, or other criminal activities.
One common example of an illegal agreement is an agreement to commit a crime. For instance, if two individuals agree to rob a bank together, their agreement is considered illegal and unenforceable. Another example is an agreement that violates antitrust laws, such as an agreement between two companies to fix prices or allocate markets.
In general, there are three types of illegal agreements: agreements that are illegal on their face, agreements that are illegal as to their purpose, and agreements that are illegal as to their means.
Agreements that are Illegal on their Face
An agreement that is illegal on its face is one that is expressly prohibited by law. For instance, an agreement between two parties to sell illegal drugs is clearly illegal, and any such agreement would be considered unenforceable. Similarly, agreements that are prohibited by public policy, such as agreements for prostitution or gambling, are illegal on their face.
Agreements that are Illegal as to their Purpose
An agreement that is illegal as to its purpose is one that is entered into for an illegal purpose. For example, an agreement between two companies to fix prices or allocate markets is illegal because it violates antitrust laws. Similarly, an agreement between two individuals to commit a crime is illegal because it is against the law.
Agreements that are Illegal as to their Means
An agreement that is illegal as to its means is one that involves illegal activities to carry out its purpose. For example, an agreement between two individuals to rob a bank would be illegal as to its means because it involves criminal activity.
In conclusion, illegal agreements are those that involve activities that are not permitted by law. They are not binding on the parties involved and cannot be enforced in a court of law. To avoid entering into illegal agreements, it is essential to understand the different types of illegal agreements and their implications. As always, it is recommended to consult with legal professionals to ensure that any agreements you enter into are legally binding and enforceable.