An illegal agreement,
under the common law of contract, is one that the
courts will not enforce because the purpose of
the agreement is to achieve an illegal end. The
illegal end must result from performance of the
contract itself, however. A contract that
requires only legal performance, such as the sale
of packs of cards to a known gambler, where
gambling is illegal, will nonetheless be
enforceable. A contract to pay a gambling debt,
however, will not.
A famous example in the United States is Bovard
v. American Horse Enterprises 247 Cal. Rptr. 340
(1988), in which the California Supreme Court
refused to enforce a contract for payment of
promisory notes used for the purchase of a
company that manufactured drug paraphenalia.
|