Jan 22, 2018 in Law
Illegal Contracts

The influence of illegal contracts cannot be underestimated given its effects to agreements made by different parties.  This memo will describe how Quebec handles different cases of illegal contracts are handled in Quebec. In addition, this article will also outline the difference on how illegal contracts are handled in the United States and Quebec.

Quebec has established uniform illegal contract act, which has handles illegal contracts in different perspectives. In according to this act, an illegal contract is taken to be one, which has a defect that makes it null and void. Such contracts are also take to be invalid and can be acted upon by a court of law. Quebec considers a defector as one who breaches element of a contract.

There are some exceptions that are Quebec has put in place with regard to illegal contract. In Quebec, the fact that that a party to a contract fails to acts by a formality is not a sufficient condition of making a contract void. Such conditions can only make a contract illegal of its enactment is clearly specified.

In accordance to the Uniform illegal contract act, Quebec has the right to enforce the named act even when the contract was formed before the establishment of the act, and the possibility of defect is included in the contract. However, the act is not applied in cases where the contract formed is illegal to begin with. When this is the case, the act cannot have an effect on the contract.   

One aspect of illegal contract is the damages that result when a party is affected by the outcome that make the contract illegal. In Quebec, the court can provided compensation to affected parties through a number of different forms. Courts working on illegal contracts can provide compensation when declaration, restitution or losses are incurred due to the enforcement of an illegal contract. Whereas, the parties affected in a contract may receive compensation, the amount of compensation received depends on a number of factors. Through compensation can be done, courts always exclude profits as well as make the amount to have fair market prices.

Despite courts in Quebec providing relief to persons affected, there are some cases where individuals are cannot be granted relief. This can happen in cases where the court has to protect public interest, or because of the extent of the factors making the contract illegal.

There are some significant differences between how illegal contract are handled in the UnitedStates and Quebec. In the United, an illegal contract is defined as one, which has an illegal purpose such as illegal employment (Corrada, 2011). In the Unites States, different courts have specific jurisdiction within their state alone. The United states have some implied exceptions, which shape illegal contracts. This feature is no found in Quebec where every condition must be written down for it to be enforced in making decision on matters such as compensation. In the United States, most of the law cases litigation is done by persons who consider them to be affected by illegal contract. This people are the one who deserve to be provided with relied to pay back for whatever they have gone through (Warren, 2011).

Another difference in illegal contract in the two nations rests on how decretory factors are determined. Courts in the United States look at the individual laws before drawing their stand on an issue. With such difference, it is evident that illegal laws may differ between one country and another based on different ground. Despite such differences, the illegal contact act continues to serves Quebec in addressing its challenges on organizations and business firms.


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