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Part IV Validity, 20 Illegality and Immorality

From: Global Sales and Contract Law (2nd Edition)

Ingeborg Schwenzer, Edgardo Muñoz

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 02 June 2023

Construction of contract — Formation of contract — Illegality and contract — Performance of contract — Validity of contract — Contract clauses and damages

This chapter focuses on illegality and immorality. Every legal system claims the right to void a contract if it is legally or morally offensive while it principally protects societal and political interests. In terms of the sale of goods, civil law and religious legal systems tend to expressly deal with immorality, whereas common law systems remain vague over it. The chapter clarifies that illegal transactions are often treated differently from immoral transactions, but legislation can often blur the line. However, not every instance of illegality or immorality will render a contract incapable of performance. Many civil law systems can give restitution where a contract is found to be invalid.

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