LEARN BEST

  Illegality An illegality contract is one which is prohibited by law e.g. making a contract to break into a house to steel goods is an illegal contract.   Besides statute, there are certain contracts which are prohibited by, and therefore illegal at common law. These are contracts which offend against public policy, i.e. those which are prejudicial to public morality and public well-being. They are as follows:- 1. Contracts to commit a crime, tort or fraud; 2. Contracts that are prejudicial to the administration of justice; 3. Contracts liable to corrupt public life;   4. Contracts that are prejudicial to public safety; 5. Contracts to defraud the revenue; 6. Contracts that are sexually immoral; 7. Contracts that are prejudicial to the country’s foreign relations. ILLEGAL CONTRACTS An illegal contract is one which is prohibited by law or which contravenes a provision of law or one which ids contrary to public policy. Where both parties are guilty of the illegality they ...

  Meaning of the Imprest Principle The imprest principle is a system of controlling petty cash whereby a fixed sum of money is given to the petty cashier at the beginning of a period. At the end of the period, the petty cashier is reimbursed with exactly the amount spent so that the petty cash balance is restored to its original fixed amount. Definition of the Imprest System The imprest system of petty cash is a method under which a predetermined amount of money is advanced to the petty cashier, and after accounting for all petty cash expenditures during a specific period, the amount spent is refunded to bring the balance back to the original imprest amount. Objectives of the Imprest System The imprest system is adopted in organizations for the following reasons: 1.       To ensure proper control of petty cash expenditure 2.      To reduce the risk of misuse and fraud 3.      To simplify the recordi...