Illegal Agreement Include

Illegal Agreements: What They Are and What You Need to Know

When businesses enter into agreements with one another, they often do so with a certain level of trust and confidence in their ability to work together. However, not all agreements are legal, and it`s important to know what makes an agreement illegal and what the consequences of entering into such an agreement could be.

What Is an Illegal Agreement?

An illegal agreement, also known as a void agreement, is one that goes against the law and is therefore unenforceable. Some examples of illegal agreements include:

1. Agreements to commit a crime: If two parties agree to commit a crime together, their agreement is illegal. For example, if two individuals agree to rob a bank, their agreement is illegal and unenforceable by law.

2. Agreements that violate public policy: Agreements that go against public policy are also considered illegal. For example, if two companies agree to fix prices, their agreement violates antitrust laws and is therefore illegal.

3. Agreements that involve fraud: If an agreement is built upon a lie or untrue information, it is considered fraudulent and illegal. This can include agreements that involve false advertising or misrepresentation of facts.

Consequences of Entering into an Illegal Agreement

If you enter into an illegal agreement, you risk facing serious consequences. Some consequences can include:

1. Legal action: If a party to an illegal agreement feels wronged or harmed, they may take legal action against the other party. This could involve filing a lawsuit or pressing criminal charges.

2. Financial penalties: If a party is found to have entered into an illegal agreement, they could face financial penalties, including fines and fees.

3. Damage to reputation: Entering into an illegal agreement could also damage the reputation of both parties involved. This could result in a loss of business or clientele.

How to Avoid Illegal Agreements

To avoid entering into illegal agreements, it`s important to:

1. Be aware of the law: Before entering into any agreement, it`s important to research the legality of the agreement. This could involve consulting with a lawyer or other legal expert.

2. Read the fine print: Make sure to read the entire agreement and look for any clauses or provisions that could be illegal.

3. Run the agreement by a third party: If you`re unsure whether an agreement is legal, it`s always a good idea to run it by a third party, such as a legal expert or industry professional.


Illegal agreements are a serious matter and can result in legal action, financial penalties, and damage to reputation. To avoid entering into illegal agreements, it`s important to be aware of the law, read the fine print, and consult with legal experts when necessary. By doing so, you can protect yourself and your business from the consequences of an illegal agreement.