Legality Of Object And Consideration

The object or consideration of an agreement must be lawful , in

order to make the agreement a valid contract ,for, section 10 lays down that all agreements are
contract if made lawful consideration and with a lawfull object.

The use of word “illegal” is somewhat misnomering here .the word

“object” and “consideration” used in sec 23 are not synonymous. The word “object “ here
means “ purpose or design”. Thus , where a person ,while in insolvent circumstances ,
transferred his property to one of his creditors with the object of defrauding his creditors , it
was held .

What Considerations and Objects Are Unlawfull ?

Section 23 says that a consideration or an object of an agreement is lawful unless,

1. it is prohibited by law.
2. it is of such nature that, if permitted, defeats the provisions of a law.
3. it is fraudulent.
4. it involves or implies injury to another person or property of another.
5. it is immoral or against public policy.

Illustrations
1. A promises to sell his house to B for 10000 Rs. The object is the house and the consideration is 10000/- both are
lawful.
2. A promises to pay B 1000/- if C fails to pay his debt to B within next 6 months. B upon this promise give 6 more
months to C repaying debt. 
3. A promises to B to superintend B's manufacture of Indigo, which is lawful, as well as a trade in illegal items for a
monthly salary of 5000/. Unlawful.
4. A promises to pay 5000/- per month to B to clean his house and live with him in an adulterous relationship.

Section 23 
The consideration or object of an agreement is lawful, unless- it is forbidden by law 1[ ; 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; 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.