Deck 12: Illegality and Public Policy

Question 1

An agreement to commit a crime amounts to the offence of conspiracy?

Answer 1

True

Question 2

Property may be recovered under an illegal contract in which situations?

A) Where there has been substantial performance of the contract
B) Where the illegal purpose has not been carried out
C) Where one party entered into the contract as a result of the others fraudulent misrepresentation
D) There cannot be any recovery of property

Answer 2

B,C

Question 3

Which of the following classes of contracts are void because they contravene public policy?

A) Contracts that promote sexual immorality
B) Contracts in restraint of marriage
C) Contracts to bring legal proceedings abroad
D) Contracts to commit torts

Answer 3

A,B

Question 4

Why might the consequences of the doctrine of contractual illegality be a potentially potent in some situations?

Question 5

What would likely be the validity of a contract that committed one or more parties to it to committing a statutory tort?

Question 6

To what extent is the effect of a contract made in contravention of the law determined as a matter of statutory interpretation?

Question 7

What test did Devlin J lay down in his judgment in St John Shipping Corp v Joseph Rank Ltd? How useful is this test?

Question 8

Is it right that the law should accept that a party can be indemnifed for an act of negligence but not in respect of most other tortious acts?

Question 9

In Tinsley v Milligan why was Milligan ultimately successful in claiming a share of the property?

Question 10

Explain the concept of locus poenitentiae in the context of contractual illegality.

Question 11

Contracts that are void for illegality can be divided into which two broad groups?

A) Contracts where the agreement itself is forbidden
B) Contracts which are inherently repugnant
C) Contracts which offend concepts of fair dealing
D) Contracts where the performance of the agreement would be illegal

Question 12

Which of the following are categories of contractual illegality?

A) Contracts to indemnify
B) Contracts made with minors
C) Contracts which constitute a criminal offence
D) Contracts to commit torts

Question 13

In which of the following cases was it possible to recover property which had passed under an ostensibly illegal contract?

A) Tribe v Tribe
B) White v White
C) Osman v Ralph J Moss
D) Tinsley v Milligan

Question 14

A contract to contravene the rules of a recognised professional body would not be forbidden.

Question 15

A contract that is 'contrary to statute' is unenforceable even if it is in all other respects a properly constituted contract?

Question 16

A contract to indemnify a party for the commission of strict liability offences could be held valid?

Question 17

Even if neither party to a contract pleads its illegality, the law will not offer any remedy to facilitate its enforcement?

Question 18

The law will not allow the illegal provisions of a contract to be severed from otherwise legal provisions.

Question 19

Any contract made with a prostitute is illegal.

Question 20

In which case was the performance of a contract held to be 'contrary to statute' even though the seller of goods believed the buyer had the requisite licence?

A) Nagel v Feilden
B) Re Mahmoud and Ispahani
C) Wilson v First County Trust Ltd
D) Javraj v Hashwani

Question 21

A contract to indemnify a party against the commission of which of the following offences would be valid?

A) Speeding
B) Taking a motor vehicle without consent
C) Driving without insurance
D) Driving without due care and attention

Question 22

Which of the following cases is authority for the rule that money paid for an illegal promise cannot be recovered?

A) Padua v College of Ambulance
B) Partington v College of Ambulance
C) Parker v College of Ambulance
D) Parkinson v College of Ambulance

Question 23

How might the Human Rights Act lead to a contract being held contrary to public policy?

Question 24

Arnold contracts with Xena to kill Sarah. Would the contract:

A) Be enforceable?
B) Be unenforceable for lacking certainty?
C) Be unenforceable for lacking intention to create legal relations?
D) Be unenforceable for being illegal?

Question 25

Will property that has passed under an illegal contract be recoverable?

A) No
B) Yes
C) It depends on the circumstances
D) It depends on the nature of the illegality

Question 26

Is it possible to make a contract to dissolve a marriage:

A) Before the wedding?
B) During cohabitation?
C) After the wedding?
D) At anytime?

Question 27

It is possible to contractually exclude the jurisdiction of the court

A) In determining issues of fact
B) In determining issues of law
C) In matrimonial disputes
D) In family disputes

Question 28

The case of Parkinson v College of Ambulance Ltd (1925) concerned an illegal contract:

A) Contrary to public policy
B) To commit a crime
C) To commit a tort
D) Neither of the above, the contract was held to be valid

Question 29

Contracts that constitute a criminal offence are:

A) Always illegal and unenforceable
B) Sometimes unenforceable depending on the nature of the crime
C) Only illegal if the defendant is prosecuted
D) Usually enforceable if not reported

Question 30

Where money or other property has been transferred under an illegal contract

A) The court will never assist the claimant to recover it
B) The court will demand recovery of all money or property which has been transferred under an illegal contract
C) Generally the court will not assist the claimant to recover money or property transferred under an illegal contract, but some limited exceptions do apply
D) Generally the court will not assist the claimant to recover money or property transferred under an illegal contract, previously, some limited exceptions did apply but these have now been abolished
E) Feedback

Question 31

In which case did the Court of Appeal uphold a decision that a contract for advertisements for sex lines was not illegal?

A) Pearce v Brooks (1866)
B) Armhouse Lee Ltd v Chappel (1996)
C) C. Baker v Jones (1954)
D) D. Hermann v Charlesworth (1905)

Question 32

A contract in restraint of trade

A) Is never reasonable and is always void
B) Is enforceable if the person wishing to impose the restriction can show that it is a reasonable means of protecting a legitimate interest
C) Is only enforceable after the expiry of a three month period after an employee has left a company
D) Is always enforceable where the employee has signed the agreement

Question 33

In Blue Chip Trading Ltd v Helbawi (2009), what did the court do with an illegal contract?

A) Enforced it in equity
B) Severed the illegal parts from the legal and enforced the legal part of the contract
C) Held the contract to be void due to illegality
D) Declared that severance could not be considered in this type of contract

Question 34

In the case of Re Mahmoud and Ispahani (1921) the contract was illegal because:

A) It was an immoral contract
B) It was a contract to commit a tort
C) Its performance was contrary to statute
D) It was a contract to receive payment for arranging a marriage