The Students' Summary of the Law of Contract

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If the defendant relies on illegality as a defence, he must prove facts which make the contract illegal, i.e. he must prove what the real nature of the contract is — and, when he has done so, it will be for the Court to determine, as matter of law, whether on those facts the contract is illegal. But this (1) Jones V. Merionethshire Building Society, [1892] 1 Ch. 173.
(2) Scott V. Brown, Doering & Co., [1892] 2 Q. B. 724.
(3) Hire Furnishing Co. v. Riohens (1887), 20 Q. B. D. 387.
138 CONTEAOTS
...rale must be read with the preceding one ; and even though the defendant does not seek to rely on the illegality of the contract, if facts are proved which make it illegal, the Court will at its own instance refuse to enforce the contract.
Art. LXXVIII. — Subsequent Illegality.
A contract which, being made consistently with the rules of law at the time when it is made, becomes illegal by some change of the law, is thereby dissolved, and further performance is excused.
Note. — It seems that an action can be brought for a breach which occurred before the contract became illegal.


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