When is the object of agreement not lawful
11/September/2025 10:56
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Let’s go into detail, because this is based on Section 23 of the Indian Contract Act, 1872.
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When is the Object of an Agreement Not Lawful?
Meaning of Object
The object of an agreement means the purpose or design for which the agreement is made.
For a contract to be valid, both consideration and object must be lawful.
? Section 23 of the Indian Contract Act, 1872:
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 injury to the person or property of another,
or is regarded by the court as immoral,
or opposed to public policy.
If the object falls into any of the above, the agreement is void.
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Cases Where the Object is Not Lawful
1. Forbidden by Law
If the purpose of the contract is prohibited by any law, the object is unlawful.
Example: A agrees to sell smuggled goods to B. The object is illegal.
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2. Defeats the Provisions of Any Law
Even if not directly forbidden, if the object indirectly violates law, it is unlawful.
Example: An agreement to pay money to a public officer to avoid income tax liability.
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3. Fraudulent Purpose
If the intention is to commit fraud, the object is unlawful.
Example: A agrees to sell goods to B with the intention of smuggling them across the border.
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4. Involves Injury to Person or Property
If the object is to cause harm to another’s body or property, it is unlawful.
Example: A promises to pay B ₹10,000 if B beats up C.
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5. Immoral Object
If the object is against accepted standards of morality, it is unlawful.
Example: A landlord lets out his house to a prostitute to carry on her trade.
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6. Opposed to Public Policy
Any agreement that harms the welfare of society or goes against the public interest is unlawful.
Examples:
Agreement to trade with an enemy during wartime.
Marriage brokerage agreements (paying money to arrange marriages).
Agreements restricting parental rights.
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Examples from Real Life
1. Drug dealing contract: A agrees to supply B with narcotic drugs. Since it is forbidden by law, the object is unlawful.
2. Bribery contract: A promises to pay B (a government officer) ₹50,000 to approve his license. The object is against public policy and void.
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✅ Conclusion
The object of an agreement is not lawful if it:
is illegal, fraudulent, immoral, causes injury, defeats law, or opposes public policy.
Such contracts are void-ab-initio (invalid from the beginning).
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