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    The document discusses the legality of consideration and objects in agreements under Section 23 of the Indian Contract Act. It states that consideration or objects are lawful unless they are forbidden by law, defeat the provisions of any law, are fraudulent, involve injury to person or property, are regarded as immoral by the courts, or are opposed to public policy. Examples are provided of considerations that have been found to be unlawful, such as those that aim to stifle prosecution, involve maintenance and champerty, or tend to injure public service. The document concludes by listing references for further reading on contract law.

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    The document discusses the legality of consideration and objects in agreements under Section 23 of the Indian Contract Act. It states that consideration or objects are lawful unless they are forbidden by law, defeat the provisions of any law, are fraudulent, involve injury to person or property, are regarded as immoral by the courts, or are opposed to public policy. Examples are provided of considerations that have been found to be unlawful, such as those that aim to stifle prosecution, involve maintenance and champerty, or tend to injure public service. The document concludes by listing references for further reading on contract law.

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    106 views10 pages

    Legality of Object and Consideration

    Uploaded by

    Vanshdeep Kaur Saran
    The document discusses the legality of consideration and objects in agreements under Section 23 of the Indian Contract Act. It states that consideration or objects are lawful unless they are forbidden by law, defeat the provisions of any law, are fraudulent, involve injury to person or property, are regarded as immoral by the courts, or are opposed to public policy. Examples are provided of considerations that have been found to be unlawful, such as those that aim to stifle prosecution, involve maintenance and champerty, or tend to injure public service. The document concludes by listing references for further reading on contract law.

    Copyright:

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    Legality of Object and Consideration

    DR. JASDEEP KAUR


    ASSOCIATE PROFESSOR
    CHANDIGARH LAW COLLEGE
    What considerations and objects are lawful, and what not
    (Section 23)
    The consideration or object of an agreement is lawful, unless—
    • it is forbidden by law 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.
    Forbidden by Law
    • S.L. Fernandes v. V.M. Fernandes AIR 1981 Goa 18.
    • Re Mahmoud v. Ispahani (1921) 2 K.B. 716.
    • Difference between void and illegal contracts
     Abdul Jabbar v. Abdul Muthaliff AIR 1982 Mad. 12.
    • Not applicable in case of mere regulation
     Banarasi Dass v. Shankuntala AIR 1989 Delhi 184.
    Defeat the Provisions of Law
    • Ram Sewak v. Ram Charan AIR 1982 All. 177
    • Abdul Pirojkhan Nabab v. Hussenbi (1904) 6 Bom. L.R. 728.
    Fraudulent Purpose
    • Jai Ram v. Kahna Ram AIR 1963 H.P. 3.
    • Manni Ram v. Purshottam Lal AIR 1930 All 732.
    Agreement injurious to the person or property of
    another
    • J.M.D. Alloys Ltd. v. Bihar State Electricity Board AIR 2009 Pat
    26.
    • Agreement lawful if only one’s own interest is protected and
    no harm to other
     Jai Ram v. Kahna Ram AIR 1963 H.P. 3
    Immoral
    • Bai Vijli v. Nansa Nagar (1885) 10 Bom. 152.
    • Pyare Mohan v. Narayani AIR 1982 Raj 43.
    Opposed to Public Policy
    • Agreement to Stifle Prosecution
     Ouseph Poulo v. Catholic Union Bank AIR 1965 SC 166.
    • Agreement of Maintenance and Champerty
     Executive Officer for Navaneetha Krishnaswami Devasthanam v.
    Rakmani & Co. (1955) 2 M.L.J. 339.
    • Trading agreement with an enemy
    • Marriage Brokerage Contract
    • Agreement tending to injure public service
    N.V.P. Pandian v. M.M. Roy AIR 1979 Mad. 42.
    REFERENCES
    • Narendra Kumar, The Indian Contract Act
    • Mulla, Law of Contract
    • R.K. Bangia, Law of Contract-I
    • Bare Act
    THANKS

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