Indian Contract Act,1872
Act No : 9
Section : What considerations and objects are lawful and what not
23.What considerations and objects are lawful and what not.-Theconsideration or object of an agreement is lawful, unless- it is forbidden by law1* ; or is of such a nature that, if permitted, it would defeat theprovisions of any law; or is fraudulent ; or involves or implies injury to the person or property of anotheror ; the Court regards it as immoral, or opposed to public policy. In each of these cases, the consideration or object of anagreement is said to be unlawful. Every agreement of which the objector consideration is unlawful is void. Illustrations (a) A agrees to sell his house to B for 10,000 rupees. Here B'spromise to pay the sum of 10,000 rupees is the consideration for A'spromise to sell the house, and A's promise to sell the house is theconsideration for B's promise to pay the 10,000 rupees. These arelawful considerations. (b) A promises to pay B 1,000 rupees at the end of six months,if C, who owes that sum to B, fails to pay it. B promises to granttime to C accordingly. Here the promise-of each party is theconsideration for the promise of the other party and they are lawfulconsiderations. (c) A promises, for a certain sum paid to him by B, to make goodto B the value of his ship if it is wrecked on a certain voyage. HereA's promise is the consideration for B's payment and B's payment isthe consideration for A's promise and these are lawful considerations. (d) A promises to maintain B's child and B promises to pay A1,000 rupees yearly for the purpose. Here the promise of each partyis the consideration for the promise of the 'other party. They arelawful considerations. (e) A, B and C enter into an agreement for the division amongthem of gains acquired, or- to be acquired, by them by fraud. Theagreement is void, as its object is unlawful. (f) A promises to obtain for B an employment in the publicservice, and B promises to pay 1,000 rupees to A. The agreement isvoid, as the consideration for it is unlawful. (g) A, being agent for a landed proprietor, agrees for money,without the knowledge of his principal, to obtain for B a lease ofland belonging to his principal. The agreement between A and B isvoid. as it implies a fraud by concealment, by A, on his principal. (h) A promises B to drop a prosecution which he has institutedagainst B for robbery, and B promises to restore the value of thethings taken. The agreement is void, as its object is unlawful. (i) A's estate is sold for arrears of revenue under theprovisions of an Act of the Legislature, by which the defaulter isprohibited from purchasing, the estate. B, upon an understanding withA, becomes the purchaser, and agrees to convey the estate to A uponreceiving from him the price which B has paid. The agreement is void,as it renders the transaction, in effect a purchase by the defaulter,and would so defeat the object of the law.--------------------------------------------------------------------- 1 See ss. 26, 27, 28 and 30, infra.---------------------------------------------------------------------29 (j) A, who is B's mukhtar, promises to exercise his influence,as such, with B in favour of C, and C promises to pay 1,000 rupees toA. The agreement is void, because it is immoral. (k) A agrees to let her daughter to hire to B for concubinage.The agreement is void, because it is immoral, though the letting maynot be punishable under the Indian Penal Code. (45 of 1860.) Void agreements
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