Illegal Contracts Flashcards
Illegality at Common Law - Contract to Commit Crime or Tort
Everet v Williams [1893]
Contract bw 2 highway men to share the spoils of their illegal activities held unenforceable
Illegality at Common Law - Contract to Commit Crime or Tort
Beresford v Royal Insurance Co [1938]
Deceased incurred significant debts and killed himself. Life insurance didn’t provide for suicide + was a crime at the time. Should it be interpreted as paying out for this or does that make it illegal?
Held the contract does not pay out in circs where insured committed suicide.
Illegality at Common Law - Contract to Commit Crime or Tort
Gray v Barr [1971] Wrongdoing not criminal
G suing B in negligence for death of her H. B cleared at criminal trial of murder and manslaughter
Trying to avoid her claim, he sought to rely on his house insurance that covered ‘home accidents’
Held the policy did not cover such: what occurred couldn’t be described as an accident and would
be contrary to public policy to allow him be indemnified for injuries from his own misconduct
Common Law - Contracts Tending to Prejudice the Administration of Justice
Nolan v Shiels [1926]
Contracts to compromise a criminal proceeding are illegal as prevents justice for the public:
Agreement to pay £50 in return for promise to end criminal proceedings deemed illegal and unenf
Common Law - Maintenance
Re Trepeca Mines [1963]:
Maintenance is “improperly stirring up litigation and strife by giving aid to one party to bring or defend a claim without just cause or excuse”. Must have just cause.
Common Law - Maintenance
Hill v Archbold [1967]:
A TU helped bring defamation actin on behalf of 2 members. Not maintenance: brought action in good faith.
Common Law - Maintenance
Martell v Consett Iron Co [1955]:
Assoc for Prevention of Pollution were allowed support action of
anglers against company polluting their waters. Held there was a sufficient common interest.
Common Law - Champerty
Fraser v Buckle [1996]
F were ‘heir-locators’. B contracted with F where B agreed to pay a share of any inheritance it received as a result of F’s assistance. Contract deemed illegal as it was champertous.
Held the giving of assistance to one party by a person who has neither an interest in the action nor any other motive recognised by law is not allowed. Can encourage suppression of evidence, etc.
Common Law - Champerty
Persona Digital Telephony v Minister for Public Enterprise [2017]
3rd party litigation funder from UK brought application for a declaration that 3rd party litigation funding was lawful in Ireland. Argued the case could simply not be brought w/o the funding.
HC refused. Appealed to SC: Denham confirmed champerty still illegal here: need Act to change
Common Law - Contracts Promoting Immorality
Pearce v Brooks [1866]
Owner of carriage leased it to a prostitute knowing she was going to use it for her work.
Held illegal and unenforceable. But morals change from generation to generation…
Common Law - Contracts Promoting Immorality
Upfill v Wright [1911]:
Contract to let flat to couple using it for adulterous purposes held illegal.
Common Law - Contracts Promoting Immorality
Heglibston Est v Heyman [1977]:
But upheld a similar agreement to Upfill v Wright 60 years later!
Common Law - Contracts to Trade with Enemies of the State
Ross v Shaw [1917]:
WWI contract to buy yarn from Belgian mill. Under enemy occupa. Thus illegal
Common Law - Contracts that Breach Foreign Law
Foster v Driscoll [1929]
Held whiskey smuggling into the US during prohibition an illegal contract as breach US law
Common Law - Contracts to Defraud the Revenue
Tomlinson v Dick Evans U Drive [1978] UK
Employee given pay increase that both parties knew was paid from petty cash to avoid income tax
When he brought unfair dismissal claim, claim failed as it was founded on an illegal contract
