This problem is based on borrowing and illegality. The borrowing by Simiyu Tito is on the
face of it an ordinary contract between a lender and a borrower. However the contract is
tainted with illegality in that part of the money borrowed is being used to promote
corruption as well as facilitate the commission of a crime since Wanyonyi Peter is aware of
the illegality the borrowing is unenforceable. This is because illegality renders a contract
unenforceable and the operative principle in such a case is that gains and losses remain
where they have fallen. Though part of the loan was used for a lawful purpose the entire
contract is tainted with illegality.
My advise to Wanyonyi Peter is that he cannot recover the amount borrowed from Simiyu
Tito as he has no enforceable rights.
maurice.mutuku answered the question on May 1, 2018 at 05:59
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