Legality of Object

What is Legality of Object in Contract Law?

Quick Definition

Legality of object refers to the requirement that a contract must have a lawful purpose to be enforceable. If the subject matter or objective of an agreement is illegal or contrary to public policy, the contract will not be upheld by the courts. This ensures the legal system does not support wrongdoing.

In Context

A contract may be invalid if it involves committing a crime, such as agreeing to sell prohibited substances, or if it is designed to evade statutory duties. It can also be unenforceable where it conflicts with public policy, for example agreements that restrict trade excessively or encourage immoral conduct. In Everet v Williams, a contract between highwaymen to share stolen proceeds was refused enforcement, showing the courts’ unwillingness to assist unlawful arrangements. Even where only part of a contract is illegal, courts may sever the offending section if the remainder can stand independently. The key issue in exams is identifying whether the illegality goes to the root of the agreement or is merely incidental.

See Also

• Public Policy

• Void Contracts

• Severance of Contracts

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