Section
23 of Indian Contract Act 1872 deals with lawful objects and consideration and
the said Section is reproduced below for ready reference.
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Image Credit: www.legalbites.in
Statutory provision:
23. What considerations and objects are lawful and what
not.-
The consideration or object of an agreement is lawful,
unless-
-it is forbidden by law; or
-is of such 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;
-the Court regards it as immoral, 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.
Illustrations
(a) A agrees to sell his house to B for 10,000 rupees. Here
B's promise to pay the sum of 10,000 rupees is the consideration for A's
promise to sell the house, and A's promise to sell the house is the consideration
for B's promise to pay the 10,000 rupees. These are lawful 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 grant time
to C accordingly. Here the promise- of each party is the consideration for the promise
of the other party and they are lawful considerations.
(c) A promises, for a certain sum paid to him by B, to make
good to B the value of his ship if it is wrecked on a certain voyage. Here A's
promise is the consideration for B's payment and B's payment is the
consideration for A's promise and these are lawful considerations.
(d) A promises to maintain B's child and B promises to pay A
1,000 rupees yearly for the purpose. Here the promise of each party is the
consideration for the promise of the' other party. They are lawful considerations.
(e) 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 is unlawful.
(f) A promises to obtain for B an employment in the public
service, and B promises to pay 1,000 rupees to A. The agreement is void, 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 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.
(h) A promises B to drop a prosecution which he has
instituted against B for robbery, and B promises to restore the value of the
things taken. The agreement is void, as its object is unlawful.
(i) A's estate is sold for arrears of revenue under the
provisions of an Act of the Legislature, by which the defaulter is prohibited
from purchasing, the estate. B, upon an understanding with A, becomes the purchaser,
and agrees to convey the estate to A upon receiving 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.
(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
to A. 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
may not be punishable under the Indian Penal Code.
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