Principle The consideration or object of an agreement is unlawful if it is forbidden by law Eve...........

Indian Contract Act (ICA)1872 Consideration of Contract

Principle: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void.

Facts: ‘X’, promises to pay ‘I” t 50,000, if he (1”) commits a crime. ‘X’ further promises to indemnify him (‘Y’) against any liability arising thereof. el” agrees to act as per X’s promise.

Which of the following derivations is CORRECT?

There is a contract between ‘X’ and ‘I”

There is an agreement between ‘X’ and ‘Y’ which can be enforced by the court of law

There is an agreement between ‘X’, and ‘Y’ which cannot be enforced by the court of law

There is a voidable contract between ‘X’ and ‘Y’

Explanation:

The object of the contract being to commit a crime and indemnity from criminal consequences would make the object unlawful and as such the contract will be void.
Hence, option 3 is the correct answer.