Illegality Meaning in Law: Definition, Examples & Legal Significance

Illegality refers to the condition or quality of being illegal or contrary to the law. In legal discussions, the term is used when an act, agreement, transaction, or course of conduct violates a legal rule or is prohibited by law.

Understanding illegality is important because an illegal act may affect whether a contract can be enforced, whether a claim can succeed, and what legal consequences may follow.

What Does “Illegality” Mean?

In law, illegality means that something is prohibited by law or inconsistent with a legal requirement.

For example:

The court considered whether the agreement involved illegality.

This means the court was examining whether the agreement involved something that the law prohibits.

The exact consequences depend on the relevant law and the circumstances.

Illegality vs Illegal

These words are closely related but serve different grammatical purposes.

• Illegal is an adjective used to describe something prohibited by law.
• Illegality is a noun referring to the condition or existence of something illegal.

For example:

The transaction was illegal.

The court examined the illegality of the transaction.

The first describes the transaction. The second refers to the legal problem associated with it.

Illegality in Contract Law

Illegality can become particularly important in contract law.

An agreement may raise issues of illegality when its purpose, subject matter, or performance involves conduct prohibited by law.

For example:

A contract requiring a party to perform an unlawful act may raise an issue of illegality.

Depending on the applicable law, an illegal agreement may be unenforceable or may have other legal consequences.

However, not every legal problem with a contract necessarily makes the entire contract illegal. Courts may examine the specific provision, purpose, conduct involved, and applicable legal rules.

Examples of Illegality

Illegal Purpose

The parties entered into an agreement for an illegal purpose.

The concern is that the purpose of the agreement itself violates the law.

Illegal Transaction

The court examined whether the transaction involved illegality.

The issue is whether the transaction involved conduct prohibited by law.

Illegality in Performance

A contract may appear valid when created but later raise an issue if its performance requires conduct that the law prohibits.

For example:

The agreement could not lawfully be performed because the required activity was prohibited by law.

The precise legal consequences depend on the applicable legal rules.

Illegality and Enforceability

One of the most important questions involving illegality is whether a court will enforce the agreement or provide a remedy.

Generally, courts do not simply enforce an arrangement that requires prohibited conduct. However, the effect of illegality can vary considerably.

A court may need to consider:

• What law was allegedly violated?
• What exactly was prohibited?
• Was the illegal conduct central to the agreement?
• Did the parties know about the illegality?
• Has the illegal conduct already occurred?
• What remedy is being requested?
• What does the applicable law provide?

These questions can determine the legal consequences.

Illegality vs Unlawfulness

Illegality and unlawfulness are closely related concepts, but they are not always used in exactly the same way.

Illegality generally refers to the state or condition of being illegal.

Unlawfulness generally refers to conduct or an action that is contrary to law or lacks a lawful basis.

For example:

The court examined the illegality of the transaction.

Here, the focus is on whether the transaction itself involved something prohibited by law.

The court found the search unlawful.

Here, the focus is on whether the search had a lawful basis or complied with applicable legal requirements.

The precise distinction can depend on the jurisdiction and area of law.

Can Illegality Make a Contract Void?

It can, but not automatically in every situation.

If a contract requires conduct that is prohibited by law, the agreement may be unenforceable or otherwise affected by illegality. The legal consequences depend on the applicable law and the nature of the illegality.

Courts may also distinguish between an agreement that is entirely prohibited and one where only a particular provision or part of the transaction creates a legal problem.

Why Does Illegality Matter?

Illegality can affect more than whether a particular act is permitted.

It may influence:

• Contract enforceability
• Availability of legal remedies
• Validity of certain transactions
• Civil liability
• Regulatory consequences
• Criminal liability, where the conduct satisfies the requirements of a criminal offence

Therefore, identifying illegality can be an important step in determining the legal consequences of a transaction or dispute.

Frequently Asked Questions

What is the meaning of illegality in law?

Illegality means the condition of being illegal or contrary to applicable law.

Is illegality the same as illegal?

They are related but grammatically different. Illegal describes something prohibited by law, while illegality refers to the condition or existence of that prohibited conduct.

Can illegality make a contract unenforceable?

Yes, in some circumstances. An agreement involving prohibited conduct may be unenforceable or subject to other legal consequences, depending on the applicable law.

Is every unlawful act a crime?

No. Some unlawful conduct may lead to civil or administrative consequences without constituting a criminal offence.

What is an example of illegality?

If an agreement requires the parties to perform an act prohibited by law, the agreement may involve illegality.

Final Takeaway

Illegality means the condition of being illegal or contrary to law. The concept can arise in contracts, commercial transactions, civil disputes, regulatory matters, and criminal law.

However, the existence and legal effect of illegality depend on the specific law, facts, purpose of the transaction, and circumstances involved. An act being described as illegal does not, by itself, determine every legal consequence that follows.