THE COMPLEXITIES OF ILLEGAL CONTRACTS IN INTERNATIONAL TRADE AND COMMERCE

Abstract

The general principle of law is that all over the world contract is enforceable except where it is tainted with illegality or certain vitiating elements are present. Illegal contract may be classified either as statutory or non-statutory. the term illegality is this area of law is very complex, as this differs from place to place, that is what is „illegal? in country „A? may be „legal? in country „B? and this is quite visible in international trade and commerce. International trade and commerce has gained much prominence in the recent times, partly because of technological advancement which effect is the increase in the volume of „online? trading activities, otherwise known as „ecommerce?. It is a common occurrence for conflict to arise between the parties to a contract where either of the party claims that the said contract is illegal and therefore unenforceable; such claims usually put the other party in dire straits particularly where he has furnished consideration. This paper considers in some depth issue of illegal contract generally and in particular trans-border commerce, the attendant consequence of unenforceability and rights of the parties. It is instructive to note that parties to a contract that is illegal in nature have no right of waiver or ratification; this is more so, when such illegality is statutory. The paper further addresses the complex nature of contractual relationship between parties who reside in two different jurisdictions, which the regulatory framework and policies on „illegality? in commerce differs