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Contract and Commercial Law Act 2017

Contracts legislation - Illegal contracts - Illegal contracts have no effect

73: Illegal contracts have no effect

You could also call this:

“Contracts that break the law don't count and can't be used”

If you make a contract that is against the law, it won’t work. The contract has no effect, which means it’s like it never happened. You can’t get any property or things from an illegal contract. This rule applies even if other laws or rules say something different. However, there might be some exceptions in this part of the law or in other laws. Remember, it’s important to make sure your contracts follow the law to avoid these problems.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844168.

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Business > Fair trading Money and consumer rights > Consumer protection
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72: Breach of enactment, or

"Contracts stay legal even if they break rules, unless the rules say otherwise"

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74: Protection of persons who acquire property in good faith and without notice, or

"Protection for innocent people who receive property from illegal contracts"

Part 2 Contracts legislation
Illegal contracts: Illegal contracts have no effect

73Illegal contracts have no effect

  1. Every illegal contract is of no effect.

  2. No person is entitled to any property under a disposition made by or under an illegal contract.

  3. This section and section 74 apply—

  4. despite any rule of law or equity to the contrary; but
    1. subject to the provisions of this subpart and of any other enactment.

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