Legality and Physical possibility

Question 1

How a contract can be in conflict with statute, common law, public policy and good morals

Answer 1

• illegal:
  
  • –> conclusion of contract
  • –> purpose of contract
  • –> performance of contract

(generally invalid)

Question 2

Legality (in detail)

Answer 2

• contract contrary to:
  
  • –> statute - null and void
  • –> common law ()
    - -> gambling (invalid)
    - -> wagers (valid but unenforceable)
  • –> public policy (unenforceable or invalid)

Question 3

Restraint of trade

Answer 3

• valid and enforceable

Question 4

Consequences of illegal contracts (null and void)

Answer 4

• ex turpi causa rule —> no actions result from disgraceful cause
• if performance was already delivered, other party my reclaim their performance/value of unless par delictum rule

Question 5

Par delictum rule

Answer 5

• where both parties are not necessarily equally to blame, possessor of performance is stronger
  
  • –> other party cannot reclaim performance
• if both parties have performed courts will not interfere

Question 6

Physical possibility and certainty

Answer 6

• contract is possible for all parties to perform in terms of contract at given time
• performance must be determinable or determined

Question 7

Physical possibility (in detail)

Answer 7

• if performance is impossible contract is invalid
  
  • –> objective nature (invalid)
  • –> subjective nature (valid)

Question 8

Determined or determinable performance

Answer 8

• aware of what kind of performance will be performed by conclusion of contract