Pearce v Brooks

Facts

Coachbuilders hired a brougham to a prostitute on hire-purchase. The jury found they knew she wanted it to attract clients.

Issue

Could they recover the instalments?

Held

No. They knew the purpose was sexually immoral.

Principle

A contract knowingly made to further sexual immorality is illegal.

Why it matters

Knowledge of the purpose is what taints a contract that looks ordinary on its face.

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