An Agreement the Object or Consideration of Which Is Unlawful If

Legitimate contractual objects and objects must be lawful. Object means the target. Consideration means the value of the promise. If the item or consideration is prohibited by law. Example: smuggling. If it destroys the provisions of a law. If the item or consideration is fraudulent. Example: Fraudulently obtaining the person`s signature on a marriage certificate. If it is a violation of the person or property of others. Example: Agreement to constitute a violation of a person. If the court declares the object or consideration immoral. For the cases referred to in Article 23, it is necessary to check or see if the section invalidates the agreement on the subpage of the objects or if the consideration is illegal.

The three things, as mentioned above, namely. (i) consideration of the Agreement, (ii) the subject matter of the Agreement, and (iii) the Agreement must also be kept in mind, and thus the three principles arising from the Section – namely: The subject matter hereof is expressly or implicitly prohibited by law. For example, the manufacture or sale of excise items is prohibited under the Excise Duty Act, except with a government licence. For this reason, the sale of spirits without a licence is prohibited under the Excise Duty Act and therefore illegal. A contract concluded in violation of a legal prohibition is null and void, whether express or implied prohibition. In short, all agreements involving violations of laws adopted to protect or promote the public interest are void. The object of the contract and the consideration for the contract must not be fraudulent, because the contract will then become null and void. If it cancels the provisions of a law: If the object or consideration of an agreement is null and void, the provisions of a law, if this is allowed, it will be considered null and void.

The nature of the object and consideration is such that it destroys the purpose of the law. Theft. The agreement is considered null and void as it violates the provisions of Hindu law. The nature of the contract between husband and wife violates the spirit of Hindu marriage law and is therefore considered void. Therefore, the Indian Contracts Act provides us with the parameters that make up these legitimate considerations and contractual issues. An agreement whose purpose is to deceive others is void. If the parties agree to engage in fraud against a third party and not against any of the parties, their agreement is illegal and void. The first two examples in Box 6.1 fall into this category. (i) an agreement or contract is void if its object is to commit an unlawful act; Any agreement that involves or involves a violation of persons or other property is considered illegal and therefore void. For example, a person borrowed 100 rupees and in return performed an obligation in favour of the lender, including the claimant in this case. The person in the bond promised to work for him for two years, otherwise he agreed to pay a very exorbitant interest rate and the amount of the principal immediately.

The contract was found to be void because the promise contained in the bond amounted to slavery on the part of the defendant, which was both prejudicial to a person and illegal. If the object or examination of an agreement excludes morality, it is void. The following examples would help to better understand the point. Article 23 of the ICA 1872: Which considerations and objects are legal and which are not.- A lawful object in economic law means that it must not violate public order. The purpose of public policy is not to restrict the rights of an individual, but to preserve and protect the general well-being of the community. Let`s see what types of contracts are considered contrary to public order: if it is fraudulent: if an agreement is concluded with an object to defraud others, the agreement will be considered null and void. Theft. Any agreement on the purchase of goods between P and X is considered invalid because the conclusion of a trade with the enemy is contrary to public order.

Any agreement between L and P is also invalid as it is guaranteed for the main agreement. L cannot therefore claim his money from P. However, if L did not know the reasons for P`s borrowing, he can perform the contract to recover the money. Example 1: A promises B to drop a charge he brought against B for robbery, while B promises to restore the value of the things he took away. The contract is void because its object is illegal. An agreement to get judicial or state officials to act corruptly and disrupt legal proceedings. The object of the contract is the performance of an unlawful act. The California Court of Appeals for the Third District refused to reach an agreement to pay for the promissory notes used to purchase the drug manufacturing organization and similar goods. Although the items sold are not actually illegal, the court refused to comply with the agreement on grounds of public order.

Although the object or consideration of the agreement is sometimes not directly prohibited by law, they are always prohibited if they defeat the objective of legality. Consent to such an object or consideration is void. If a legislative decree provides for a sanction for an act or promise, the implementation of such an act or promise would be tantamount to the defeat of that decree, since the law implicitly intends to prohibit that act. If the Court considers it immoral or contrary to public order: if the object or consideration is immoral or contrary to public order, the agreement is deemed null and void. For example: A rents a taxi to B, a prostitute, knowing that it would be used for immoral purposes. The agreement is null and void. Example 2: A agrees to let her daughter go to B as a concubine. The agreement is void because it is immoral, although renting may not be punishable under the Indian Penal Code (45 of 1860). If prohibited by law: If the object or consideration of an agreement is the commission of an act prohibited by law, the agreement is void. That is, the act that is punishable under the criminal law of the country or the special law. If the object or consideration of an agreement is the performance of an act prohibited by law, the agreement is void. Acts or undertakings prohibited by law are those that are punishable by law, as well as those prohibited (expressly or implicitly) by special acts of Parliament and state legislators.

Example: A has made an agreement with T to buy his apartment for 40 lac. Here is the consideration of A maison and therefore the consideration of T 40lac. A`s estate is sold for tax arrears in accordance with the provisions of a law of the legislature prohibiting the defaulting debtor from acquiring the estate. B. becomes the buyer after consultation with A. and agrees to transfer the estate to A after receiving from him the price that B has paid. The agreement is not valid because it makes the transaction as a purchase by the defaulter. and thus destroy the purpose of the law. Maintenance and Champerty: In a maintenance contract, a person promises to assert a lawsuit in which he has no personal interest. Champerty is when a person agrees to help another party in a dispute in exchange for some of the damage or product received. A signs a contract with B in which he agrees to pay a sum of money to B if he destroys a landmark in the city. This contract has no legal consideration and purposes and is not considered legal.

A, B and C conclude an agreement on the sharing between them of the profits acquired or to be acquired by them by fraud. Thus, the nullity of the contract as an object is illegal. The usual task of the courts is to rely on the firm leaders of public order and to apply them to different situations. For example, A, the manager of a company, agrees to hand over a contract to B if he pays an amount of Rs 5,000 to the former private. .

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