Sythe = legal?

You missed my point. In your analogy it would have to be some personal service relating to weed. If you hire someone to sort something (say socks or rocks or something) for you, that in itself is not illegal, and neither is advertising to find such a person to hire. If it then so happens that the thing you are sorting is drugs, well then that is where the illegality comes in.

If I can make a contract with you to start an account on my behalf and then play it up to a certain level, why can I not make a contract with you to exchange this same time investment for something else of value at a later stage, and further, how do you differentiate between the two transactions when they are private contracts?

It is up to the individuals who contract with third parties such as your game host, to determine what will and will not break their individual contracts with those third parties. No other person is responsible if you break your contracts. Keep in mind also that breaking a contract is not against the law. If you exit a contract or break the terms of a contract then you are simply liable to pay the damages (usually specified in the contract.) In the case of the game host this typically just means they revoke your access privileges to their servers.

 

I never signed or agreed to any such terms to begin with, so it is impossible for me to break them.