Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Contracts legislation - Illegal contracts

71: Illegal contract defined

You could also call this:

“What makes a contract illegal?”

In this part of the law, an illegal contract is explained. It’s a contract that breaks the law or is unfair according to New Zealand law. This can happen when the contract is made or when people do what the contract says.

An illegal contract can also be one that has a part in it that’s against the law, even if that part can be taken out of the contract.

Here are some examples to help you understand:

  • If you and someone else agree to do something that’s a serious crime, that’s an illegal contract.
  • If you promise to pay someone to keep quiet about a crime instead of telling the police or the court, that’s an illegal contract.
  • If you agree to use your influence in the wrong way to get someone a public honour, that’s an illegal contract.

Remember, there’s another part of the law (section 72) that might change how this rule works in some cases.

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70: Interpretation, or

"Words used in this law and what they mean"

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72: Breach of enactment, or

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

Part 2 Contracts legislation
Illegal contracts

71Illegal contract defined

  1. In this subpart, illegal contract—

  2. means a contract governed by New Zealand law that is illegal at law or in equity, whether the illegality arises from the creation or the performance of the contract; and
    1. includes a contract that contains an illegal provision, whether that provision is severable or not.

        1. Examples

        A contract under which the parties agree to the commission of a serious crime.

        A contract under which one party agrees to pay money to a witness to a crime in return for the witness withholding information from the police and the courts.

        A contract to use improper influence to affect the award of a public honour.

      1. This section is subject to section 72.

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