Illegality and restraint of trade

Quiz Content

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. What type of approach to illegality was favoured by the majority of the Supreme Court in Patel v Mirza?

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. What effect did Patel v Mirza immediately have on illegality in contract law?

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. Where the making of the contract is prohibited, who may sue on it?

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. Which of the options given may constitute an enforceable contract?

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. Select the most accurate statement about the scope of illegality.

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. Can a party enforce a lawful contract, the performance for which has been carried out in an illegal manner?

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. Was the shipowner in St John Shipping Corp v Joseph Rank Ltd entitled to recover their entire freight? Why?

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. Why did Miss Hounga's claim for relief in Hounga v Allen succeed, despite her illegal conduct?

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. Where A has contracted to purchase goods from B, and B discovers A's illegal intentions with the goods, is B entitled to refuse to deliver the goods? Is this optional?

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. May A, an innocent party to the contract, refuse to perform their contract with B, where B has deliberately devised the contract to enable them to perpetrate a fraud without the knowledge of A?

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. Is there a point at which the court will not conclude that B's intention to commit an illegal act is too remote from the contract itself such that the contract should not be held to be enforceable by B?

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. Can property pass where it is the subject matter of an illegal contract?

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. What is the effect of illegality on a contract?

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. Why was it said in Singh v Ali that the transferor of property under an illegal contract may not recover that property once the contract is executed?

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. Why should the claimant, seeking to go around an illegal contract, be prevented from bringing non-contractual claims which substantively seek the same relief as an unavailable contractual claim?

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. When may a party successfully withdraw from an illegal transaction, and recover property transferred pursuant to that scheme?

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. Which statute made betting contracts void?

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. What is the effect of a term of a contract which is tainted by illegality?

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. What is the prima facie effect of a covenant in restraint of trade?

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. When might a covenant in restraint of trade be upheld?

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. When will a restraint of trade clause be enforced against an employee?

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