UNLAWFUL OBJECT AND CONSIDERATION

UNLAWFUL OBJECT AND CONSIDERATION
It is also essential for the valid contract that ‘object’ and ‘consideration’ must be lawful.
1. Forbidden by law - Agreement which is Forbidden by law is not enforceable by law. This type of agreement is unlawful and void.
In Fernandes vs Fernandes, a person transfer his business of ‘sale of liquor’ to another person who don't have proper licence to sell liquor. In this case court has held that selling liquor without obtaining proper licence is Forbidden by law. Therefore transfer of business is void.
2. Defeat the provision of any law- If the object or consideration of agreement which is not permitted, it would defeat the provision of any law, such an agreement is void.
In Ram Sewak vs Ram Charan, both the parties agreed to carry business in partnership and they also agreed that they would conceal some part of their business activity from books of accounts with a view to evade sales tax and income tax. After sometime partnership broked and one party claimed for amount dues. In this case court has held that evasion of tax is defeating the provision of tax laws. Hence contract is void.
3. Fraudulent purpose- If the consideration or object of an agreement is to commit fraud, the agreement is void. For example A, B and C enter into an agreement for the division of gains acquired by them committing fraud. The agreement is void because of fraudulent purpose.
4. Agreement injurious to the person or property of another- ‘Injury’ here means harm which is unlawful. For example, if by agreement it is asked to borrower to do manual labour until repayment and impose heavy penalty. This agreement virtually amounts to slavery and therefore it is void. For example, an agreement to print a book in violation of another’s copyright is void.
5. Immoral- For example, interference in married life, a man encourages to a married woman to give Rs. 1 lakh, if she divorce her husband, it is interference in married life.
Agreement related to prostitution, a landlord cannot recover rent if he knowingly let his house to a woman who is indulge in prostitution.
6. Against public policy- For example, agreement based on bribe.
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[@sonakthankachan8589]

Nice class. 👍👍👍

[@samikhyamishra8289]

superb sir

[@SimranKesharii]

Sir aap bht slow pdha rhe h

[@harshsharma9515]

Love u sir

[@anshupal9853]

sir this helpful for du students

[@businesscasestudy9899]

owsmmmmmm

[@parikhyit1783]

no 1 point same person that fernandas v.s fernandes

[@washingtali3992]

Sir samjana hai to accha sai samjaiyai kya padha rehai ho

[@parasbagha]

👍

[@parikhyit1783]

why

[@suriyap9693]

Hiii sir

[@shashwatchaudhary5108]

Boring