An illegal or unlawful contract is an agreement between two or more parties that goes against the law and is therefore not enforceable. These contracts are typically void from the outset, meaning that they have no legal effect, and any parties involved in such contracts may be subject to legal consequences.

The reason why such contracts are considered unlawful varies depending on the jurisdiction. Some types of contracts may be deemed illegal because they involve an illegal activity, such as gambling or drug trafficking. In such cases, the contract is typically unenforceable because it is illegal to engage in such activities.

Other types of contracts may be considered unlawful because they violate public policy. These types of contracts are often contracts that are deemed to be against the greater good of society, such as contracts that seek to restrict a person`s ability to work in a particular industry.

One of the most common types of illegal contracts is a contract that violates antitrust laws. Antitrust laws are put in place to prevent companies from engaging in unlawful practices that prevent competition. If a contract between two or more companies is found to be in violation of antitrust laws, it will be deemed illegal and unenforceable.

Another common type of illegal contract is a contract that violates labor laws. Such contracts may include agreements that seek to pay workers less than the minimum wage or that restrict a worker`s ability to join a labor union.

In addition to being unenforceable, parties involved in illegal contracts may be liable for legal consequences. For example, if a contract is found to be in violation of antitrust laws, the companies involved may be subject to large fines and other legal action.

In conclusion, an illegal or unlawful contract is an agreement that goes against the law and is therefore unenforceable. Such contracts may be deemed illegal because they involve an illegal activity or because they violate public policy. Parties involved in such contracts may be subject to legal consequences, including fines and other legal action. It is important to ensure that any contract you enter into is legal and enforceable to avoid any negative repercussions.