Unlawful agreement to sell: Understanding the basics
An agreement to sell refers to a contract between the seller and buyer, where the seller agrees to transfer the ownership of a property or asset to the buyer in exchange for a consideration. However, if the agreement is unlawful, it is not enforceable by law. In this article, we will discuss what an unlawful agreement to sell is, and what are its implications.
What is an unlawful agreement to sell?
An unlawful agreement to sell refers to a contract that violates any law, either directly or indirectly. There are various reasons why an agreement to sell can be unlawful, such as:
1. The subject matter of the contract is illegal: If the object of the contract is illegal or against public policy, such as drugs or weapons, the agreement is considered unlawful.
2. The consideration is unlawful: If the consideration or payment involved in the contract is unlawful, such as accepting bribes or blackmail, the agreement is considered unlawful.
3. The terms of the contract are against public policy: If the terms of the contract are against public policy or morality, such as contracting to commit a crime, the agreement is considered unlawful.
Implications of an unlawful agreement to sell
If an agreement to sell is found to be unlawful, it can have severe legal implications for both parties involved in the contract. Some of the implications are as follows:
1. The contract becomes void: An unlawful agreement to sell becomes void and unenforceable in a court of law. Neither party can legally enforce the terms of the contract.
2. The parties may face legal action: If one party breaches the unlawful agreement to sell, the other party can take legal action. In some cases, both parties may face legal action, depending on the nature of the contract.
3. The parties may be liable for damages: If one party suffers damages as a result of the unlawful agreement to sell, the other party may be held liable for the damages.
In conclusion, an unlawful agreement to sell is a contract that violates any law or public policy. Such contracts are not enforceable by law, and the parties involved may face legal action. It is essential to ensure that any agreement to sell is lawful and does not violate any laws or public policy. If you are unsure about the legality of a contract, it is advisable to seek legal advice before signing it.