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¶ … Victor and Hugo both knowingly entered into a contract to split the proceeds from a felonious action, the contract is not enforceable. In this situation, Victor can even keep the ten percent that he has now offered to pay Hugo instead of the original fifty percent that they had agreed upon. According to the Law Commission Consultation Report 2009, "If a contract has as its object the deliberate commission of a crime, then it is illegal and the courts will not enforce it."
There is substantial case law to support this stance. For example, in Brown Jenkinson & co. ltd. V Percy Dalton ltd. (1957), the court held that "a contract to indemnify for losses suffered as a result of the deliberate commission of the tort of deceit is unenforeceable."
Further, it was found in Anderson v Daniel (1924) that "a contract may be lawful in...
Such a contract will become unlawful."
Since both Hugo and Victor were both aware that in order for Hugo to receive payment, he would have to provide the equipment for Victor to burgle a bank. In this scenario there are no innocent parties to an obviously illegal contract, thus making Victor's obligation to Hugo null and void.
Victor could also claim that because they both knew the split was to occur if they got a big haul he is no longer obligated because the haul was not what was expected. The Restatement of Contracts, Second § 265 states "Where, after a contract is made. A party's principal purpose is substantially frustrated without his fault by the occurrence of an event the non-occurrence of which was a basic assumption on which the contract was made, his…
On the other hand, the situation with Kaboom Ltd. is much different. Kaboom Ltd., though remiss in not requiring Victor to show his license proving his right to purchase explosives, was an innocent party. Kaboom did not contract to be paid if the haul was sufficient. Kaboom contracted to be paid in six monthly installments, presumably with no knowledge of how these explosives were to be used. Thus, Kaboom would be considered an innocent party with regard to the burglary. However, Kaboom may be considered a "guilty" party for failing to require Victor's license prior to selling him the explosives. In the law, "there is some latitude in determining who is a "guilty party where the illegality lies in the method of performance. For the present purposes, a party is not guilty because he performs a contract in an unlawful manner."
In fact, in Hughes v Asset Manager's plc (1995), the court held that" the effect on the innocent party would be so severe that the legislature cannot have intended to prohibit the contract at all."
Though there is also case law rejecting the innocent party's claim (Re Mahmoud and Ispahani (1921), the court held that the "innocent party may have three other remedies. First, the innocent party may be able to recover damages for breach of "collateral warranty (See Strongman v Sincock [1955]. Secondly, the innocent party may be able to recover damages for misrepresentation (See Shelley v Paddock [1980]. Thirdly, innocence may
Legal methods of voiding contracts include action by both parties through revocation, rejection, counter-offer, and full performance. Methods of voiding contracts by law include lapse of time, destruction, death or incompetence, and/or illegality. When entering into the contract with Furniture World, Bryant Remodeling did so in good faith and competency, under no duress, intent to fraud, or a frustration of purpose. Bryant Remodeling fully believed that they would be able to
Steps were also taken to organize a stock market in Lahore (Burki, 1999, pp.127-128). Also organized during this period were the Pakistan Industrial and Credit Investment Corporation (PICIC) and the Industrial Development Bank of Pakistan (IDBP), both of which were important to industrial development, obtaining "large amounts of capital from the World Bank, the former for investment in large industries, the latter in relatively smaller enterprises" (Burki, 1999, p. 128). This
66). Furthermore, social software will only increase in importance in helping organizations maintain and manage their domains of knowledge and information. When networks are enabled and flourish, their value to all users and to the organization increases as well. That increase in value is typically nonlinear, where some additions yield more than proportionate values to the organization (McCluskey and Korobow, 2009). Some of the key characteristics of social software applications