Legality - Legality The underlying purpose of the contract...

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Legality The underlying purpose of the contract must be for a legal purpose Contracts that are considered illegal: Contracts that are contrary to a statute Contracts contrary to public policy Contracts that are contrary to a statute Statutes are laws that are on the books Gambling Contracts o Gambling is illegal; thus, contracts to gamble are illegal Usurious Contracts o There is a legal limit to the amount of interest that can be charged on a loan o If a contract calls for more than the legal limit of interest, the contract is said to be usurious, and is illegal Licensing Statutes o Laws that require persons performing certain tasks to be licensed for that task o If someone enters into a contract with an unlicensed person, there are two possible outcomes. Examine the purpose of the licensing statute; If the purpose was to prevent the unauthorized practice of a duty, a contract entered into with such a person is illegal and thus void o Law or medicine
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Legality - Legality The underlying purpose of the contract...

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