Illegal Contracts Are Always Void In Washington State
The Washington State Court of Appeals, Division II, recently reaffirmed the longstanding legal principal that a contract which is illegal is void—that is, the contract is null from the beginning and unenforceable by either party. The referenced case is Bankston v. Pierce County, Cause No. 42850-4-II, decided May 21, 2013. 2013 Wash App. LEXIS 1228.
In Bankston, a purported contractor won a public works contract using a fictitious entity. The court later found the contract between the contractor and Pierce County illegal and void because the contract was obtained without following the competitive bidding laws and guidelines.
Some more common examples used to illustrate why illegal contracts are unenforceable involve contracts for illegal drug sales or the hiring a hitman. The law does not allow courts to be used to enforce contracts based on illegal actions.
However, not all illegal contracts are easy to identify. For example, contracts that conflict with statutory requirements (such as the competitive bidding requirements at issue in Bankston) are illegal, and contracts that violate public policy (contracts that restrain trade or contracts that indemnify intentional wrongdoers) are also illegal.
If you have a contract dispute in Washington State and questions about whether the contract itself is enforceable, or even legal, contact our attorneys in the commercial litigation department at Washington State Law Firm Beresford Booth.