{"componentChunkName":"component---src-templates-blog-post-ts","path":"/contracts-contrary-to-public-policy-from-a-statue/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"243bfbd7-ca73-5fe8-9c79-81cf33f5813e","excerpt":"Ensure that you have understood all the rules, regulations, statues, and law that apply to your business before entering into any contracts. Hire counsel if…","html":"<p>Ensure that you have understood all the rules, regulations, statues, and law that apply to your business before entering into any contracts. Hire counsel if necessary.</p>\n<p>Historically, courts have refused to intervene in cases where a contract has been found to be unenforceable on the grounds of illegality (because it is contrary to a statue or regulation) even if the non-intervention resulted in unjust enrichment for either party.</p>\n<p>For example, in <em>Kingshot v Brunskill [1953]</em>, the Defendant entered into a contract with the Plaintiff to purchase non-graded apples. The contract contravened <em>The Farm Products Grade and Sales Act Regulation 3</em>, which provided that no person could sell or offer for sale any produce unless it had been graded. The Defendant owed the Plaintiff over $700 for apples which he had received but had not paid for. The Plaintiff sued to recover this amount. </p>\n<p>The court, reluctantly, held that because the contract contravened the above regulation, it was unenforceable. The action was dismissed and the Plaintiff could not recover the money he was owed.</p>\n<p>However, since <em>Kingshot v Brunskill</em>, courts have developed three (3) exceptions to the general rule that the Court will not order the return of property transferred under any illegal contract. The exceptions are: (1) where the party claiming is less at fault; (2) where the party claiming repents before the contract is performed; and (3) where the party claiming has an independent right to recover (source: <em>Berne Development Ltd. v. Haviland</em>, 1983 CarswellOnt 629, para 37).</p>","frontmatter":{"title":"Contracts contrary to public policy from a statue","date":"October 27, 2016","description":"Ensure that you have understood all the rules, regulations, statues, and law that apply to your business before entering into any contracts. Hire counsel if necessary.","author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal","bio":"Rajah Lehal is Founder and CEO of Clausehound.com.  Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.","image":{"childImageSharp":{"fluid":{"base64":"data:image/jpeg;base64,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","aspectRatio":1,"src":"/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg","srcSet":"/static/d7bbad08c257f3987a4a5710553e9e17/2b9ee/Rajah.jpg 80w,\n/static/d7bbad08c257f3987a4a5710553e9e17/e5d64/Rajah.jpg 160w,\n/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg 320w,\n/static/d7bbad08c257f3987a4a5710553e9e17/6e63d/Rajah.jpg 400w","sizes":"(max-width: 320px) 100vw, 320px"}}}},"tags":["Contract Drafting","Case Law","Rajah"]}}},"pageContext":{"slug":"/contracts-contrary-to-public-policy-from-a-statue/","previous":{"fields":{"slug":"/claims-of-oppression/"},"frontmatter":{"title":"Claims of oppression","tags":["Case Law","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}},"next":{"fields":{"slug":"/contracts-contrary-to-personal-interests-can-be-voided/"},"frontmatter":{"title":"Contracts contrary to personal interests can be voided","tags":["Contract Drafting","Case Law","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}}}}}