One of my friends wants to host a warez forum on the server, he will be linking to warez but not hosting the warez on your server. Do you allow this?
Well, no. This is still the promotion of illegal activities.
You see, it's nothing personal, but every site that does this, reflects in every way, back to the host.
It can cause legal issues, and upstream issues for any host that allows it. In fact, the host can get hit with legal papers from each software vendor who's pirated software is being hosted or linked to.
In fact, when our software was pirated, and linked to, we not only went after the site owner, but the host as well.
With that said, even if we did not have an issue with it, the datacenter and/or network provider may, and may override the hosting provider, shutting down the box on their own.
A quick word of advice.....
If you plan to host anything serious on the server you purchase, no matter who it is from, you may want to reconsider hosting your friend on it, to avoid concerns of having your own serious works shut down along with your friend's site.