Part 2
Contracts legislation
Illegal contracts:
Illegal contracts have no effect
74Protection of persons who acquire property in good faith and without notice
Nothing in section 73 invalidates a disposition of property referred to in subsection (2) if the person to whom the disposition was made—
- was not a party to the illegal contract; and
- had not, at the time of the disposition, notice that the property was the subject of, or the whole or any part of the consideration for, an illegal contract; and
- otherwise acted in good faith.
The dispositions are—
- a disposition of property by a party to an illegal contract for valuable consideration:
- a disposition of property made by or through a person who became entitled to the property under a disposition to which paragraph (a) applies.
See section 9 (which defines disposition).