Illegality of a contract results on two consequences:

  • the agreement is void;
  • a party cannot recover what he has parted with (or paid), upon the illegal contract, (Weeramantry, page 332)

Contracts may become illegal:

  • because they are in conflict with a statute, or
  • because they are illegal at common law, or
  • because they are opposed to public policy or morality, (Weeramantry, page 333).