Bigos v Boustead

Facts

In breach of exchange control, A agreed to supply B with Italian currency. B deposited a share certificate as security. A supplied nothing. B sued for the certificate.

Issue

Could B recover the certificate?

Held

No. The contract was illegal, and B had not repented of the illegal purpose.

Principle

Money or property handed over under an illegal contract is not recoverable unless a real exception applies. Convenience is not repentance.

Why it matters

It is both an illegality case and a failed repentance case.

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