This section is from the book "A Commentary On The Law Of Contracts", by Francis Wharton. Also available from Amazon: A Commentary On The Law Of Contracts.
As we have already seen, money which has been paid for an illegal purpose cannot be recovered back when the purpose has been put in operation.8 It is otherwise as to money paid on an executory illegal agreement when the party suing is not implicated in a continuous criminal design.9 That (independently of statute) money paid on a gambling debt cannot be recovered back, has been already seen.1 - When there has been a rescission of an illegal contract, and an agreement that the money paid on it should be returned, an action for money had and received lies on this agreement.2 - The mere fact that a lender is cognizant of the fact that the money is to be applied to an illegal purpose does not preclude him from recovering back.3
Money paid for illegal purposes cannot be recovered back.
1 Supra, sec 150, 739; Snowdon V. Davis, 1 Taunt. 359; Valpy V. Manley, 1 C. B. 594.
2 Wisner V. Bulkley, 15 Wend. 321.
3 See Snow V. Prescott, 12 N. H. 535.
4 Fowler V. Shearer, 7 Mass. 14.
5 Stevens V. Fitch, 11 Met. 248; Sturges V. Allis, 10 Wend. 354; Ma-ghee V. Kellogg, 24 Wend. 32; Clark V. Pinney, 6 Cow. 297; Duncan V. Kirkpatrick, 13 S. & R. 292; and cases cited 2 Ch. on Cont. 11th Am. ed. 947.
6 Scholey V. Halsey, 72 N. Y. 578.
7 Supra, sec 198, 532-4, 740; Brown V. McKinally, 1 Esp. 279; Lothian V. Henderson, 3 B. & P. 520; Graham V.
Tate, 1 M. & S. 610; Skyring V. Greenwood, 4 B. & C. 290; Fellows V. School Dist., 39 Me. 559; Cunningham V. Boston, 15 Gray, 468; Wilde V. Baker, 14 Allen, 349; and other cases cited 2 Ch. on Con. 11th Am. ed. 934.
8 Supra, sec 340 et seq.
9 Supra, sec 354-5; Kiewert V. Rinds-kopf, 46 Wis. 481.
 
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