Principle The consideration or object of an agreement is unlawful if the Court regards it as op...........

Indian Contract Act (ICA)1872 Consideration of Contract

Principle: The consideration or object of an agreement is unlawful if the Court regards it as opposed to public policy. Every agreement of which the object or consideration is unlawful is void.

Facts: ‘X’ promises to obtain for ‘Y’ an employment in the public service; and ‘Y’ promises to pay Rs. 5,00,000/- to ‘X’. Which of the following derivations is CORRECT?

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

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

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

Explanation:

The principle though once again on consideration is slightly different from the one given in the preceding question. In this question if the object or consideration is opposed to public policy which implies those acts which are unhealthy in public interest, a court can declare the contract to be void. In this case the object of the contract is one which promotes corruption.