No cause of action for damages can arise out of an illegal transaction. No action can be maintained upon a contract growing out of an immoral or illegal transaction, when the transaction was not subsequent or collateral , but directly connected with the illegal act. The test to determine whether a demand connected with an illegal transaction is capable of being enforced at law is whether the plaintiff requires any aid from the illegal transaction to establish his case. Carrollton Georgia lawyers know that a contract for a contingency fee in criminal cases are void. Georgia courts have held that unmarried cohabitation is immoral consideration which renders a contract to share living expenses unenforceable. OCGA 13-8-2 was passed allowing certain commercial contracts in partial restraint to be enforceable if the provisions are deemed reasonable. Hire a Carrollton Georgia Lawyer if you believe that you have entered into an illegal contract and the other party is attempting to enforce the contract.
The following is the statute regarding contracts contravening public policy:
§ 13-8-2. Contracts Contravening Public Policy Generally
(a) A contract that is against the policy of the law cannot be enforced. Contracts deemed contrary to public policy include but are not limited to:
(1) Contracts tending to corrupt legislation or the judiciary;
(2) Contracts in general restraint of trade, as distinguished from contracts which restrict certain competitive activities, as provided in Article 4 of this chapter ;
(3) Contracts to evade or oppose the revenue laws of another country;
(4) Wagering contracts; or
(5) Contracts of maintenance or champerty.
(b) A covenant, promise, agreement, or understanding in or in connection with or collateral to a contract or agreement relative to the construction, alteration, repair, or maintenance of a building structure, appurtenances, and appliances, including moving, demolition, and excavating connected therewith, purporting to require that one party to such contract or agreement shall indemnify, hold harmless, insure, or defend the other party to the contract or other namedindemnitee, including its, his, or her officers, agents, or employees, against liability or claims for damages, losses, or expenses, including attorney fees, arising out of bodily injury to persons, death, or damage to property caused by or resulting from the sole negligence of the indemnitee , or its, his, or her officers, agents, or employees, is against public policy and void and unenforceable . This subsection shall not affect any obligation under workers´ compensation or coverage or insurance specifically relating to workers´ compensation, nor shall this subsection apply to any requirement that one party to the contract purchase a project specific insurance policy, including an owners or contractors protective insurance, builders risk insurance, installation coverage, project management protective liability insurance, an owner controlled insurance policy, or a contractor controlled insurance policy.
History. Amended by 2009 Ga. Laws 64, §1, eff. on the day following the ratification at the time of the 2010 general election of an amendment to the Constitution of Georgia providing for the enforcement of covenants in commercial contracts that limit competition
Amended by 2007 Ga. Laws 121, §1, eff. 7/1/2007.
Note: This section is set out twice. See also § 13-8-2, effective until on the day following the ratification at the time of the 2010 general election of an amendment to the Constitution of Georgia providing for the enforcement of covenants in commercial contracts that limit competition.
Also, keep in mind that if the illegal part of the contract can be separated from the legal parts of the contract than it might be enforceable.
§ 13-8-1. Contracts To Do Immoral Or Illegal Things
A contract to do an immoral or illegal thing is void. If the contract is severable, however, the part of the contract which is legal will not be invalidated by the part of the contract which is illegal.
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