If a contract is illegal, what will happen according to the courts?

In legal terms, when a contract is deemed illegal, the general principle is that the courts will not assist the parties involved in enforcing it. This is rooted in public policy, as enforcing an illegal contract would contradict the law and encourage unlawful behavior. Consequently, the courts typically adopt a "laissez faire" attitude regarding the consequences of the illegal agreement. The phrase "losses will fall where they may" embodies this idea, indicating that each party must bear the consequences of their actions and losses resulting from the illegal contract.

This principle serves to deter illegal activity by highlighting that individuals cannot seek legal remedies when they engage in contracts that violate laws or public policy. Therefore, the parties cannot claim compensation or enforce terms of the contract since to do so would be to endorse or validate the illegal nature of the agreement.