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    6.legality of Object & Consideration

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    Raj Hans
    An agreement is considered unlawful if its object or consideration is: 1) Forbidden by law, such as obtaining public employment through bribery. 2) Defeats the provisions of any law, like an agreement between a husband and wife to live separately. 3) Involves fraud, such as an agreement to divide gains acquired through fraud. 4) Implies injury to a person or property, like an agreement requiring excessive interest and immediate repayment if someone defaults on a loan.

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    6.legality of Object & Consideration

    Uploaded by

    Raj Hans
    121 views2 pages
    An agreement is considered unlawful if its object or consideration is: 1) Forbidden by law, such as obtaining public employment through bribery. 2) Defeats the provisions of any law, like an agreement between a husband and wife to live separately. 3) Involves fraud, such as an agreement to divide gains acquired through fraud. 4) Implies injury to a person or property, like an agreement requiring excessive interest and immediate repayment if someone defaults on a loan.

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    6.LEGALITY OF OBJECT & CONSIDERATION

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    An agreement is considered unlawful if its object or consideration is: 1) Forbidden by law, such as obtaining public employment through bribery. 2) Defeats the provisions of any law, like an agreement between a husband and wife to live separately. 3) Involves fraud, such as an agreement to divide gains acquired through fraud. 4) Implies injury to a person or property, like an agreement requiring excessive interest and immediate repayment if someone defaults on a loan.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views2 pages

    6.legality of Object & Consideration

    Uploaded by

    Raj Hans
    An agreement is considered unlawful if its object or consideration is: 1) Forbidden by law, such as obtaining public employment through bribery. 2) Defeats the provisions of any law, like an agreement between a husband and wife to live separately. 3) Involves fraud, such as an agreement to divide gains acquired through fraud. 4) Implies injury to a person or property, like an agreement requiring excessive interest and immediate repayment if someone defaults on a loan.

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    Lawful object & consideration

    Tulika Sinha
    UMU
    Under what circumstances is the object (or) consideration of a contract deemed unlawful?
    Illustrate with examples?

    Ans: Meaning: - Consideration is a technical term used in the sense of quid-pro-quo i.e..,
    something in return). When a party to an agreement promises to do something, he must get
    something in return. This “something” is defined as consideration. An agreement will not be
    enforceable if its objects (or) the consideration are unlawful. According to Indian contract Act,
    1872.

    The consideration and objects are unlawful in the following cases:

    1. If it is forbidden by law: If the object (or) the consideration of an agreement is forbidden


    by law, in such a case the agreement is deemed to be unlawful and void. An act is
    forbidden by law if, It is punishable under the criminal law of the country.It is prohibited
    by special legislations and regulations made by competent authority under power
    derived from legislature.
    a. Example: ‘A’ promises to obtain for ‘B’ an employment in the public service and
    ‘B’ promises to pay Rs.1000/- to ‘A’. The agreement is void, as the consideration
    for it is unlawful.
    2. If it is defeats the provision of any law: If the object (or) consideration of an agreement
    is of such a nature that, though not directly forbidden by law, it would defeat the
    provisions of the law, in such a case the agreement is deemed to be unlawful and void.
    a. Example: An agreement between husband and wife to live separately is invalid
    as being opposed to Hindu law.
    3. If it is fraudulent: An agreement, whose object (or) consideration is to defraud others, is
    unlawful and hence it becomes void.
    a. Example: ‘A’, ‘B’, ‘C’ enters into an agreement for division among them of gains
    acquired (or) to be acquired, by them by fraud. The agreement is void, as its
    object is unlawful.
    4. If it involves (or) implies injury to the person (or) property of another: If the object (or)
    consideration of an agreement is to injure the person (or) property of another is void. In
    such a case object (or) the consideration is deemed to be unlawful.
    a. Example: Ram Saroop (vs) Bansi Mandar (1915): Facts: “B” borrowed Rs.100
    from “L’ and executed a bond promising to work for “L” without pay for a period
    of two years. In case of default, “B” was to pay interest (at a very exorbitant rate)
    and the principal amount at once. Judgment: The contract was void as it involves
    injury to the person of “B”.
    5. If the court regards it as immoral: An agreement, whose consideration and object is
    immoral, is deemed to be illegal and void. The word immoral includes sexual immorality.
    Hence its object (or) consideration is unlawful.
    a. Example: Pearce (vs) Brooks (1866): Facts: A firm of coach-builders hired out a
    carriage to a prostitute, knowing that it was to be used by prostitute to attract
    men. Judgment: The coach-builders could not recover the hire as the agreement
    was unlawful.
    6. Where the court regards it as opposed to public policy: An agreement whose
    consideration (or) object is such a nature that opposed to public policy. Thus it becomes
    void and it deemed to be unlawful.

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