Where a court recognizes an agreement to be illegal, a lawsuit based on that agreement may be dismissed by the court even if neither plaintiff nor defendant raised the issue of illegality.

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This is known as the doctrine of illegality, which prohibits courts from enforcing contracts that are illegal or contrary to public policy, even if both parties are willing participants. The court can sua sponte (on its own) dismiss the lawsuit if it determines that the contract is illegal.

Where a Court Recognizes an Agreement to Be Illegal, a Lawsuit