Illegality Definition

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What does Illegality mean?

A bar to the enforcement of an otherwise enforceable contract as the courts cannot compel one party to complete an immoral or illegal act even if that act would not have been illegal at the time of contracting.

An agreement of mandate for the performance of an immoral or illegal act cannot be enforced, as no court will enforce an illegal contract or transaction or allow itself to be made the instrument of enforcing obligations alleged to arise out of a contract or transaction that is illegal. Illegality could be considered to be a frustrating event. A contract may be discharged on the happening of some event that renders the continuance of the contract unlawful. Typically, an event likely to render performance unlawful would be the outbreak of war or hostilities where legislation prohibits dealings in affected countries or involving property of the enemy.

View the related checklists about Illegality

Vertical agreements—drafting for MVBEO—checklist

Vertical agreements—drafting for MVBEO—checklist This Checklist sets out the essential points that should be considered under The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (No 2) (MVBEO) when drafting new vertical agreements, or updating existing vertical agreements, in relation to motor vehicle aftermarkets for the provision of repair and maintenance services or the distribution of motor vehicle aftermarket goods (together, the motor vehicle aftermarket). This Checklist is not intended to be a comprehensive guide to the MVBEO but should be used where a commercial lawyer wants to ensure that the vertical agreement falls within the MVBEO (and any guidance issued under it). For further information, see: CMA Guidance: MVBEO. A flowchart is also provided at the end of this Checklist, setting out the main steps to follow when assessing whether an agreement falls under the MVBEO. Introduction to MVBEO Any agreement which affects trade and restricts competition in the UK may be subject to the prohibition on anti-competitive agreements under the provisions of Chapter I of the Competition...

The EU Digital Services Act—checklist

The EU Digital Services Act—checklist The Checklist considers which service providers Regulation (EU) 2022/2065, the EU Digital Services Act (EU DSA) applies to, outlines what they will need to do to comply with the key obligations of the Act, and notes some of the key concepts. The EU DSA entered into force on 16 November 2022. The deadline for the publication of the number of active monthly users was 17 February 2023. On 25 April 2023, the Commission has designated 17 Very Large Online Platforms (VLOPs) and two Very Large Online Search Engines (VLOSEs). The designated companies are required to comply, within four months of their designation, with obligations under the EU DSA (see: LNB News 25/04/2023 74). On 19 December 2023, the Commission designated three additional VLOPs (see: LNB News 20/12/2023 32). All other intermediary provider services had until 17 February 2024 to comply with their obligations when the majority of the EU DSA provisions come into effect. For further information on the EU DSA, see Practice Notes: The EU Digital...

Void contracts

This Practice Note summarises the circumstances in which a contract may be declared void and the consequences when that happens. It distinguishes between void, voidable and unenforceable contracts and considers when a contract may be void due to: common mistake, unilateral mistake as to contractual terms, mistaken identity, non est factum and void under statute, as well as recognition of the separate category of illegality.For a summary, in tabular format, of the key and illustrative judgments handed down since 1 January 2020, considering contract law issues, see Practice Notes:•Contract disputes—key and illustrative decisions (2024)•Contract disputes—key and illustrative decisions (2020–2023)When is a contract a void contract?A void contract is one that is wholly lacking in legal effect. A contract will be void where:•the parties contract on the basis of a fundamental common mistake•one party contracts on mistaken terms and the other party knows of the mistake•one party is mistaken as to the other party’s identity•a party executes a document under a fundamental misapprehension as to its nature (non est factum)•a statute...

Enforcement of debt securities

Enforcement of debt securities Who can enforce? The question of who can bring enforcement proceedings against a bond issuer depends principally on whether the issue of the bonds has been structured with a trustee or a fiscal agent. When a trustee has been appointed, the trustee is generally able to enforce on behalf of the bondholders. When a fiscal agent has been appointed, it is incumbent on the bondholders to enforce their rights against the issuer. The fiscal agent has no role in enforcement. For information on the key parties in a debt capital markets transaction, see Practice Note: Parties in an issue of debt securities. For more information on the different issues that arise based on whether the bond issue is structured using a trustee or a fiscal agent, see Practice Note: Parties in an issue of debt securities—Fiscal agent or trustee. Where the bonds are issued in global, rather than definitive form (as is invariably the case with debt securities issued in the international capital...

Discover our 363 Practice Notes on Illegality

Short-form facility agreement (term loan): single company borrower—bilateral—unsecured

Short-form facility agreement (term loan): single company borrower—bilateral—unsecured Facility agreement This Agreement is made on [date] Parties 1 [insert name of Borrower], a company incorporated in England and Wales with registered number [insert company number] whose registered office is at [insert address] (the Borrower); and 2 [insert name of Lender], of [insert address] (the Lender). It is agreed as follows: 1 Definitions and interpretation 1.1 In this Agreement, unless otherwise provided: Business Day • means a day, other than a Saturday, Sunday or public holiday, on which banks are open for business in London; Commitment • means £[•] ([•] Sterling) minus any amount reduced or cancelled in accordance with this Agreement; Commitment Period • means the period commencing on the date of this Agreement to and including [•]; Default • means an event that with the giving of notice, lapse of time or other applicable condition would be an Event of Default under Clause 16; Drawdown • means [the OR a] utilisation of the...

Connection agreement for private wires

Connection agreement for private wires Date of Agreement _____________________________________20[XX] Parties 1 [name of company], a company incorporated in [insert jurisdiction] (registered number [insert co. number]) whose registered office is at [insert address] (Company); and 2 [name of company], a company incorporated in [insert jurisdiction] (registered number [insert co. number]) whose registered office is at [insert address] (Customer). Background (A) The Customer is the owner and operator of the Customer’s Installation. (B) The Company is the owner and operator of the Distribution System. (C) The Customer wishes to export electricity generated by the Customer’s Installation to the Company’s Distribution System. (D) [The Parties wish to enter into a contract on or about the date of this Agreement, under which the electricity generated by the Customer’s Installation shall be supplied to the Company by the Customer (‘Power Supply Agreement’). (E) In consideration of the Parties entering into the Power Supply Agreement, the Company shall allow the electricity generated by the Customer’s Installation to be exported to the Distribution System in...

Dive into our 52 Precedents related to Illegality

In proceedings for a child arrangements order, where statements have already been filed, one of the parties has now indicated that they wish to disclose documentation belonging to the other party such as medical records, bank statements and documents relating to their previous employment. As the Imerman rule does not apply since these are private law children proceedings, what rules or principles do apply in these circumstances?

In proceedings for a child arrangements order, where statements have already been filed, one of the parties has now indicated that they wish to disclose documentation belonging to the other party such as medical records, bank statements and documents relating to their previous employment. As the Imerman rule does not apply since these are private law children proceedings, what rules or principles do apply in these circumstances? In Tchenguiz v Imerman, the Court of Appeal delivered a judgment that made clear a person enjoys legal protection in respect of their confidential and private documentation. The court confirmed that it would be a breach of confidence for one party, without the authority of the other, to examine, make, retain or supply copies to a third party of a document whose contents it should have appreciated would be confidential. Looking at documents which a party knows to be confidential is capable of constituting an actionable wrong (para [68]). They may be guilty of a criminal offence and be at risk of...

In disclosure of an investigation, if any communications and documents leading up to a serious untoward incident report have been requested, can the defendant rely on section 41(1) of the Freedom of Information Act 2000 to not disclose such information? If so, are there certain circumstances where this exemption does not apply and are there any arguments a claimant can put forward in response to the denial of disclosure?

In disclosure of an investigation, if any communications and documents leading up to a serious untoward incident report have been requested, can the defendant rely on section 41(1) of the Freedom of Information Act 2000 to not disclose such information? If so, are there certain circumstances where this exemption does not apply and are there any arguments a claimant can put forward in response to the denial of disclosure? Serious untoward incidents (SUIs) often involve interviewing staff and preparing witness statements, assessing all the documentation and the history and then preparing a chronology, a root cause analysis of how the error came to occur, and an action plan of changes to be made with a time frame. The main purpose of the SUI is to ascertain how the mistake has occurred, learn from it and prevent it from happening again. From a claimant solicitor's point of view, the SUI and report are an important stage of the investigation into a legal claim. All the documentation relating...

See the 48 Q&As about Illegality

2024 draft amendments to the Indian Arbitration Act—good intentions are not enough

Arbitration analysis: The Department of Legal Affairs recently introduced and invited comments on the Draft Arbitration and Conciliation (Amendment) Bill, 2024 (‘Draft Bill’). This Draft Bill aims to bring substantive reforms to the Arbitration and Conciliation Act, 1996 (‘Act’), and adopts several recommendations provided in the Report of the Expert Committee to Examine Workings of the Arbitration Law dated 7 February 2024 (‘Expert Committee Report’). However, the Draft Bill also proposes several additional reforms to the Act, tipping into the realm of overkill. While the intentions behind these changes are undoubtedly positive, the proposed amendments may unfortunately lead to more confusion than clarity. This article discusses the pros and cons of the main amendments proposed in the Draft Bill.

India—Delhi High Court rules on appointment of arbitrator by a High Court in an international commercial arbitration (Hala Kamel Zabal v Arya Trading Ltd and others)

Arbitration analysis: the Delhi High Court (Delhi HC) has held that the appointment of an arbitrator in an international commercial arbitration (ICA) by a High Court (instead of the Supreme Court) does not vitiate the arbitral award if the appointment was in accordance with the arbitration agreement. The Delhi HC explained that an arbitral award can be set aside under the (Indian) Arbitration and Conciliation Act, 1996 (A&C Act) if the composition of the arbitral tribunal was (a) not in accordance with the arbitration agreement, and (b) the arbitration agreement was in conflict with a non-derogable provision of the A&C Act. The Delhi HC noted that Section 11(6) of the A&C Act, which requires the Supreme Court to appoint an arbitrator in an ICA, is a derogable provision. Hence, non-compliance with the procedure for appointment under Section 11(6) does not constitute a ground for setting aside the award. Written by Adimesh Lochan (member) and Vyapak Desai (head) of the International Dispute Resolution and Investigations Practice at Nishith Desai Associates.

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