An agreement forbidden by law is a legal term that refers to a contract or agreement that violates a law or is against public policy. Such agreements are considered unenforceable, meaning that if one party breaches the contract, the other cannot sue for damages or seek other legal remedies.

Examples of agreements forbidden by law include contracts that involve illegal activities such as drug trafficking, illegal gambling, or prostitution. Contracts that restrain trade or commerce, such as price-fixing agreements among competitors, are also considered illegal under antitrust laws.

In some cases, an agreement may be considered illegal if it violates a statute or regulation, even if the conduct is not inherently wrongful. For example, a contract that violates environmental, labor, or consumer protection laws may be considered illegal.

It is important to note that an agreement forbidden by law may still be entered into by the parties, but it will not be upheld by the courts. Additionally, parties who knowingly enter into an illegal agreement may be subject to criminal prosecution and civil penalties.

To avoid entering into an agreement forbidden by law, individuals and businesses should consult with legal counsel and conduct due diligence to ensure that the proposed contract complies with all applicable laws and regulations. This includes researching relevant statutes and regulations, as well as obtaining expert opinions on the legality of the proposed agreement.

In conclusion, entering into an agreement forbidden by law can have serious legal consequences. It is essential to thoroughly review and assess any proposed contract to ensure compliance with applicable laws and regulations. By doing so, individuals and businesses can minimize legal risks and protect their interests.