An illegal consideration refers to a promise or act that is deemed unlawful or contrary to public policy. In legal terms, it is something that cannot be enforced in a court of law, as it violates established laws or societal norms. For example, if a contract is based on a promise to engage in illegal activities, that promise is considered an illegal consideration, rendering the contract void.
This term is commonly encountered in contract law, where the validity of agreements is assessed. If a contract includes an illegal consideration, it cannot be enforced, meaning that neither party can seek legal remedies for non-compliance. This concept is relevant in various areas of law, including:
Users may find it helpful to utilize legal templates from US Legal Forms to draft contracts that avoid illegal considerations and ensure compliance with the law.
Here are a couple of examples of abatement:
Example 1: A person agrees to pay someone to commit a crime, such as theft. This agreement is based on an illegal consideration and cannot be enforced.
Example 2: A contract for the sale of illegal drugs would be void due to the illegal nature of the consideration involved. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Contracts with illegal considerations are void under state law. |
| New York | Similar to California, any contract based on illegal consideration is unenforceable. |
| Texas | Texas law also voids contracts with illegal considerations. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Illegal Contract | A contract that involves illegal activities. | Illegal consideration is a component of an illegal contract. |
| Void Contract | A contract that has no legal effect. | All contracts with illegal consideration are void, but not all void contracts involve illegal consideration. |
If you suspect that an agreement you are involved in includes illegal consideration, it is crucial to seek legal advice. You may want to:
The contract is void and cannot be enforced by either party.
