BK.

BIRLA NIGHT COLLEGE

NAME: POOJA JAISWAR

CLASS: FYBAF
ROLL NO: 32
SUBJECT: BUSSNIES LAW
INDIAN CONTRACT ACT,1872

LAWFULL CONSIDERATION AND OBEJTCHE

{ Here in law}

0bject means “Purpose or Desing”

And consideration means “ Benefit or Loss”
SECTIONS

• SECTION 10: IMPLIES THAT AN AGREEMENT ENFORCEABLE BY LAW MUST BE FOR A LAWFUL CONSIDERATION
WITH A LAWFULL OBJECT

• EXAMPLE:‘A” agress to sell his house to‘ B” in rupes 7500000.Here,the agreement is valid as both consideration and object
are lawful.

• Section 23: Every agreement of which the object or consideration is unlawful, is void.

• Every illegal agreement is unlawful,

• but every unlawful agreement is not necessary.
According to section 23 of the Indian contract Act,consideration or object of a
contract is unlawful and void in the following situations:

(1) If an act is forbidden by law

(2) If an act defeats the provision of law
(3) If it is fraudulent
(4) If it involves injury to the person or property of another
(5) If the court regards it as immoral
 Read illustrations
• (1) If an act is forbidden by law
• If the consideration or object of a contract is illegal or forbidden by law,it makes the contract void
• Example : If the consideration of a contract is to physically harm or kill a person, it is an illegal consideration
because such acitivity is unlawful under the Indian penal code .
• (2)If an act defeats the provision of law
• If the consideration or object of an agreement is such that, if it is allowed to be implemented, it defeats the
provision of any law, then the agreement is deemed to be unlawful.
• Mohan lal v.udai Narain
• A has arrears of revenue and his land being sold to recover the taxes due from him, and the provison of law
stipulates that a defaulter can not, himself acquire a property being sold to recover legitimate revenue arrrears. A
wants to retain the possession of the land, and enters into a agreement with the under wich B would acquire the
land and later transfer it to A for the price at wich he bought it.Such agreement will be deemed to be unlawful
because it render the transaction, in effect, to be a purchase by the defaulter and would defeat the object of law.
• (3) If it is fraudulent
• If the object of contarct is to defraud or cheat a person, it is deemed to be void.
• Example:A, B and C enter into an agreement for the division among them of gains acquired or to be acquired
by them by fraud.The agreement is void as its object unlawful.
• (4) If it involves injury to the person or property of another
• If any to person enter into a contract with the object of causing injury to a third person or to cause a damage to
his property, the contract is deemed to have any legal consideration and is void .
• The word ‘injury’ means criminal a wrongful harm
• Example: A ask an editor of a newspaper to publish a defamatory article against B and promises to pay Rs.
4000 for the work. The agreement is void as it involves injury to the person of B and therefore, a suit cannot be
brought to recover Rs. 4000 by the editor.
• (5) If the court regards it as immoral
• Where consideration or object of an agreement is such that the court regards it a immoral, the agreement is void.
• Bai Vijili v. nansa nagar.(1885)
• P advanced money to D a married women to enable her to obtain divorce from her husband and D agreed marry
her has soon has she obtained a divorce. It was held that P was not entitled to recover back the amount as the
agreement had for its object the divorce of D from her husband.
• CONCLUSION: For a contract to be considered as a valid contract it is important to have a lawful object and a
lawful consideration.

THANK YOU.