An agreement that violates any law or whose nature is criminal or is opposed to any public policy or immoral is an illegal agreement. These agreements are void ab initio, and so the agreements collateral to the original agreement are also void.

Illegal agreements are those agreements that are against the law or against public policy. These agreements are considered void ab initio, which means they are void from the beginning and have no legal effect. When an agreement is illegal, it is not recognized by the law and cannot be enforced by any party involved.

Collateral transactions refer to any additional agreements or transactions that are related to the main illegal agreement. These transactions are entered into to support or facilitate the illegal agreement.

In the case of illegal agreements, collateral transactions are also considered void. This means that they have no legal effect and cannot be enforced by any party involved. The reason for this is that collateral transactions are closely connected to the main illegal agreement and are considered an extension of it. Since the main agreement is illegal, any transactions related to it are also rendered invalid.

For example, if two parties enter into an illegal agreement to engage in fraud, and as part of this agreement, they enter into a collateral transaction to transfer funds between their bank accounts to facilitate the fraud, the collateral transaction would also be void. The transfer of funds would have no legal effect, and neither party could enforce the transfer or seek any legal remedies related to it.

In summary, collateral transactions related to illegal agreements are considered void. They have no legal effect and cannot be enforced by any party involved. It is important to note that engaging in illegal agreements and related transactions can have serious legal consequences, and individuals should always ensure that their agreements are legal and in compliance with the law.

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