Agreements, whether verbal or written, are essential in any business transaction. They serve as the foundation on which two or more parties conduct their business and ensure that there is mutual agreement on the terms and conditions of such transactions. However, not all agreements are legal, and any breach of such agreements may lead to legal action.

So, when are agreements considered illegal? Illegal agreements are those that are considered against the law, and they include:

1. Agreements that are against public policy – Some agreements are considered against public policy and are therefore illegal. Such agreements include contracts that involve gambling, prostitution, or any other illegal activity.

2. Agreements that are fraudulent – Committing fraud is illegal, and any agreement that is based on deceit is considered illegal.

3. Agreements that are made under duress – Any agreement that is made under duress is considered illegal. For example, if a person is threatened with physical harm if they refuse to sign a contract, the agreement is considered void.

4. Agreements that are made without proper consideration – Consideration refers to the exchange of value between the parties involved in an agreement. If one party makes a promise without receiving any value in return, the agreement is considered illegal.

5. Agreements that are in violation of antitrust laws – Antitrust laws are designed to promote competition and prevent anti-competitive practices. Any agreement that violates these laws is considered illegal.

6. Agreements that are in violation of intellectual property laws – Intellectual property laws protect the rights of copyright, trademark, and patent holders. Any agreement that violates these laws is considered illegal.

In conclusion, agreements that are considered illegal can have serious consequences, such as lawsuits and legal penalties. As a business owner, it is important to ensure that all agreements are legal and enforceable. If you are unsure whether an agreement is legal or not, seek legal advice before signing.