Illegality

Question 1

Bigos v Bousted 1951

Answer 1

Contracts involving the commission of a crime or a civil wrong are unlawful - contracts designed to evade exchange controls

Question 2

Baker v Jones (1954)

Answer 2

Contracts contrary to public policy may be h lawful - contracts to oust the jurisdiction of the courts

Question 3

Nordenfelt v Maxim Nordenfelt Guns & Ammunition Company Ltd 1894

Answer 3

Judgment of Lord MacNaghten is foundation of modern approach to restraint of trade. All restraints of trade in themselves are contrary to public policy and therefore void, however there are exceptions. It is sufficient justification if the restriction is reasonable in relation to the parties concerned and the interests of the public. Thus any term which appears to be a restraint of trade is, prima facie, void but this presumption is rebuttable.

Question 4

Faccenda Chicken v Fowler (1986)

Answer 4

The court of appeal held that trade secrets are protected but that at least some confidential information cannot be protected

Question 5

Esso Petroleum Ltd v Harper’s Garage Stockport Ltd 1968

Answer 5

Solus agreements may not always be held within restraint of trade but if they are the usual requirements must be satisfied: interests must merit protection the agreement must be reasonable in relation to the interest and must not be contrary to public policy