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Legal Presentation

-Navkaran Singh Gill Kudrat Gill Harjasdeep Singh Mohini Singh Swati Mittal

Legality of Object and Consideration

The object becomes unlawful if:
It is forbidden by law,  It is such that if allowed, it would defeat the provision of law,  It is fraudulent,  It causes injury to a person or his property,  It is of immoral nature,  If the court regards it as opposed to public policy.

Forbidden by law
It is punishable by criminal law of country.  It is prohibited by special legislation

Defeats the provision of any law

It is fraudulent

Agreements entered to promote fraud are void.

Involves injury to person or property

The word injury means criminal or wrongful harm.

The court regards it as immoral

Immoral means inconsistent with what is right.

Court regards it as being opposed to public policy
Public policy is principle of law that holds no citizen can lawfully do which has a tendency to be injurious to the public.  It includes:

 Trading

with an enemy  Interference with administration of justice  Marriage, brokerage agreements  Trafficking in public offices  Unfair dealings

Void Agreements

Void agreements
According to section 2(g), an agreement which is not enforceable by law is void.  Only those agreements which fulfil the essentials laid down in section 10 can be enforced.  Void agreement does not give rise to legal consequence and is void ab initio.

Agreement made by incompetent parties
Section 11  The following persons are incompetent to contract:

 Minor

 Person

of unsound mind  Persons disqualified by any law

Agreements declared void are as follows
  


  

Agreement, the consideration or object of which is unlawful in full or in part (sec 23-24) Agreement made without consideration (sec 25) Agreement in restraint of marriage (sec 26) Agreement in restraint of trade (sec 27) Agreement in restraint of legal proceedings (sec 28) Agreement the meaning of which is uncertain (sec 29) Agreements to do an impossible act (sec 56)

Agreements declared void are as follows

Agreement made under a mutual mistake of fact (sec20) Where both the parties to an agreement are under a mistake as to a matter of fact, essential to the agreement, the agreement is void. Agreement, the consideration or object of which is unlawful in full or in part (sec 23-24) The consideration for an agreement must be lawful. An agreement is void, if it is based on unlawful consideration. Agreement made without consideration (sec 25) An agreement to be enforceable at law must be supported by valid consideration. An agreement made without consideration is void.


  

Agreement in restraint of marriage (sec 26) An agreement restraining a person from marrying anybody or from marrying anybody except a particular person is void. Agreement in restraint of trade (sec 27) An agreement seeking to restrain a person from exercising a lawful profession, trade or business of any kind is void to that extent. Exceptions: Seller of goodwill Partner’s agreements Trade combinations Service contracts Agreement the meaning of which is uncertain (sec 29) An agreement the meaning of which is uncertain or capable of being certain is void. If the agreement contains terms which are not clear the agreement is not enforceable.

Agreements by way of wager (sec30) Wager agreements are ordinarily ‘betting agreements’. Agreements by way of wager are void, and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which may wager is made. Exceptions:  Horse race  Lottery  Contracts of insurance
 

Agreements to do an impossible act (sec 56) An agreement to do an act impossible in itself is void. For example, A agrees with B to double treasure by magic. The agreement is void.