When two parties come together to form a contract, they do so with the expectation that the agreement will be legally binding. However, not all contracts are enforceable due to certain exceptions. In this article, we will explore some of the exceptions to illegal contracts.
1. Fraudulent contracts: Contracts that are entered into under false pretenses or with fraudulent intent are not enforceable. This exception applies when one party knowingly makes false statements or conceals information that would have affected the other party`s decision to enter into the contract.
2. Contracts that violate public policy: Certain contracts are considered against public policy and are therefore unenforceable. Examples of such contracts include those that promote illegal activities, human trafficking, and those that violate consumer protection laws.
3. Contracts entered into by minors: Minors, or individuals under the age of 18, are generally not considered legally competent to enter into contracts. Therefore, any contract entered into by a minor may be voidable at the discretion of the minor.
4. Contracts that lack consideration: A contract must have consideration, or something of value exchanged between the parties, for it to be enforceable. If one party is not receiving anything of value in exchange for their obligations under the contract, the agreement may be considered unenforceable.
5. Contracts that violate present and future statutes: Contracts that violate current laws or those that would violate any future legislation that could impact the terms of the contract would be considered illegal and unenforceable.
It is important to note that while these exceptions apply to certain contracts, they do not apply to every contract that may seem illegal or unenforceable. It is best to consult with a legal professional to determine whether your particular contract may be subject to any of these exceptions.
In conclusion, contracts that do not meet legal requirements can be deemed unenforceable. The exceptions to illegal contracts include those that are fraudulent, those that violate public policy, those entered into by minors, those that lack consideration, and those that violate present and future statutes. If you are unsure about the legality of your contract, it is always best to seek legal advice.