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Ex Pacto Illicito Non Oritur Actio: The Principle That No Rights Arise from Illicit Contracts
Definition & Meaning
The phrase "ex pacto illicito non oritur actio" translates to "from an illicit contract, no action arises." This legal principle indicates that a person cannot seek legal remedies or enforce rights that stem from an illegal or unlawful agreement. Essentially, if an agreement violates the law, it is considered void, and no legal claims can be made based on it. For a contract to be valid and enforceable, it must meet the necessary legal requirements, including lawful purpose and mutual consent.
Table of content
Legal Use & context
This principle is commonly applied in various areas of law, including contract law and tort law. It serves as a foundational concept in determining the enforceability of agreements. Legal practitioners often invoke this maxim when addressing disputes arising from contracts that involve illegal activities, such as drug trafficking or fraud. Users may find that utilizing legal templates from US Legal Forms can help them navigate situations involving potentially illicit agreements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A contract between two parties to sell illegal drugs is void. Neither party can enforce the agreement or seek damages if one fails to deliver the drugs.
Example 2: A contract for a loan with an exorbitant interest rate that violates state usury laws cannot be enforced in court, as it stems from an illegal agreement. (hypothetical example)
State-by-state differences
State
Legal Context
California
Contracts involving illegal activities are void and unenforceable.
New York
Similar to California, agreements that violate public policy are not enforceable.
Texas
Contracts based on illegal acts are void, but certain exceptions may apply in specific cases.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Void Contract
A contract that is not legally enforceable.
Ex pacto illicito specifically refers to contracts based on illegal acts.
Unenforceable Contract
A valid contract that cannot be enforced due to certain legal defenses.
Ex pacto illicito applies only when the contract is illegal from the outset.
Common misunderstandings
What to do if this term applies to you
If you find yourself involved in a situation with an illegal agreement, it is essential to understand that you cannot seek legal recourse based on that contract. Consider consulting a legal professional for advice tailored to your specific circumstances. Additionally, users can explore US Legal Forms for templates that may assist in drafting valid agreements to avoid such issues in the future.
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