An Agreement of Which the Object Is Unlawful If

When companies enter into agreements with each other, the terms of the agreement are typically closely scrutinized to ensure that they are legal and enforceable. However, sometimes an agreement may contain provisions that are unlawful, potentially jeopardizing the entire agreement.

If an agreement is found to contain an unlawful provision, it is generally considered to be void and unenforceable. This means that neither party can rely on the agreement to enforce their rights or obligations, and any money or property exchanged under the agreement must be returned.

So, what exactly constitutes an unlawful agreement? Generally, an agreement is considered unlawful if its object or purpose is illegal or against public policy. For example, if two companies entered into an agreement to engage in price fixing or other anti-competitive behavior, the agreement would be unlawful since it violates antitrust laws and is against public policy.

Similarly, an agreement that involves illegal activities such as drug trafficking or money laundering would be considered unlawful due to the illegal nature of the activities involved.

It`s worth noting that an agreement doesn`t necessarily have to be explicitly illegal to be considered unlawful. For example, an agreement between two companies to engage in behavior that is legal in itself but that would harm consumers or the public interest could also be considered unlawful if it violates public policy.

If an agreement is found to contain an unlawful provision, it`s important to address the issue as soon as possible. If the parties can`t agree on a way to revise the agreement to remove the unlawful provision, the agreement will likely be void and unenforceable.

In conclusion, when entering into any kind of agreement, it`s important to carefully consider the terms of the agreement to ensure that they are legal and enforceable. If an agreement contains provisions that are unlawful, it could have serious consequences for both parties and should be addressed as soon as possible.