Contract; vitiating circumstances; illegal contracts; public policy; immorality.
Facts: Brooks purchased a carriage (a brougham) from Pearce. At the time of the sale Pearce knew that Brooks was a prostitute and that the carriage was to be used by her in the course of her profession. When Brooks failed to pay the agreed price for the carriage, Pearce sued to enforce the contract. It was argued that as long as Pearce did not know that the price would be paid from the proceeds of prostitution, the contract was enforceable.
Issue: Did the circumstances of the sale make the contract unenforceable on grounds of public policy?
Decision: The contract was unenforceable.
Reason: The court held that any person who supplies something that will contribute to the performance of an illegal or immoral act cannot recover the agreed price by means of a legal action. Pearce's knowledge of the immoral purpose for which the carriage was to be used made the contract unenforceable, even if he did not necessarily know that payment would be made from the proceeds of prostitution.
Note: Judicial attitudes towards immorality and public policy necessarily change over time and must be constantly reviewed.