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Legality of Object

Every agreement of which the


object
or
consideration
is
unlawful is void. Thus, an
unlawful object renders an
agreement
void
ab-initio.
(since its inception)

WHAT IS A LAWFUL OBJECT?

The consideration or object of an agreement is lawful unless


it
is forbidden by law, or
is of such a nature that, if permitted, it would defeat the
provisions of any law; or is fraudulent; or
involves or implies, injury to the person or property of
another; or
is regarded as immoral by a court, or opposed to public
policy
In each of these cases, the consideration or object of an
agreement is said to be unlawful. Every agreement of
which the object or consideration is unlawful is void.
(Sec. 23)

Case 1. A, B, and C enter into an agreement for the


division of gains acquired, or to be acquired, by them
by fraud. The agreement is void, as its object is
unlawful
Case 2. A, being an agent for a land proprietor,
agrees for money, without the knowledge of his
principal, to obtain for B a lease of land belonging to
his principal. The agreement between A and B is void,
as it implies a fraud by concealment, by A, on his
principal.
Case 3. A agrees to live with B as a concubine. The
agreement is void, because it is immoral, though the
act may not be punishable under the Indian Penal
Code.

Sec. 26: Agreement in restraint of marriage, is


void:
Every agreement in restraint of the marriage of any
person, other than a minor, is void
Sec. 27: Agreement in restraint of trade, is void:
Every agreement by which any one is restrained from
exercising a lawful profession, trade or business of any
kind, is to that extent is void
Case: X, a trader operating in a particular locality,
agrees to pay Y, his competitor in the business, a fixed
amount as compensation so that Y shuts down his
business in that locality. The agreement is void. If X
subsequently refuses to pay
Y the
agreed
compensation, the law will not safeguard Ys interest.

Sec.28: Agreements in restraint of


legal proceedings, is void:

Sec.29:

Agreements

void

for

uncertainty

Sec 30 : Agreements by way of


wager (making a bet) is void

Sec. 56. Agreements to do an


impossible act

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