Quebec Law on Illegal Contracts - Assignment Example

In Quebec, the Civil governs contract law, with its main elements derived from common law ("Unit Six: Contract Law", n.d.). Defective and illegal contracts under the Quebec Law covers a full range of absolute or relative nullities. There are two categories of rules, which may bring about the absolute or relative nullity of a contract. The first are those, which relate to the procedure of contract formation. The second are those, which concern public order, either statutory or based on general moral or social imperatives recognized by the courts.

Under Quebec Civil Law, in case of illegal contracts, the court must order restitution between parties and that illegal clause in the contract may be deleted and the remainder of the contract upheld in appropriate cases. However, a court may refuse restitution in favour of a party who has acted fraudulently, immorally or by deliberately breaching the law. Anent the protection granted to the true owner of a property subject of an illegal contract, the Civil Code of Quebec has already contained provisions regarding this matter.

Anent the protection granted to the owner of a property, the US law the concern is where the property is purported to be transferred under an illegal contract and the property is then the subject of a further transfer to a person who is not a party to the contract. The court may grant only the relief if there is a question as to the title of the property.