Effects or Consequences of Illegality
Misdemeanour Or Illegality renders a contract unenforceable. However the contract creates no rights and imposes no obligations at the parties. But, is because the contract is beyond the pale of law consequently neither party has a legal remedy. Thus as a general rule money or goods changing lands under an illegal contract are irrecoverable. Means gains and losses remain whenever they have fallen. Hence a court of law cannot assist parties for adjust their rights whether the contract is tainted with illegality. Conversely money or goods changing hands under an illegal contract possibly will be recoverable when
- A party repents or regrets the illegality previous to the contract is substantially performed.
- Such the parties are not in pari delicto as i.e. not equally to blame obiously.
- However the owner of the goods or money establishes title thereto devoid of relying upon the illegal contract.