Legality of object - Agreements opposed to public policy

Legality of Object

1. Business legislations Legality of object

2. Consideration or object is unlawful 2 Forbidden by law Such a nature that, if permitted, it would defeat the provisions of any law Fraudulent Involves or implies injury to the person or property of another Court regards it is immoral Opposed to public policy

3. Unlawful and illegal agreements 3 Every illegal agreement is unlawful, but every unlawful agreement is not necessary illegal. Agreements opposed to public policy with enemy Commit a crime Interfere with administration of justice Restraint of legal proceedings Trafficking in public offices and titles Opposed to duty Restraints of parental rights, marriage, trade Restricting personal liberty

4. Void Agreements 4 Agreements by incompetent parties (See. 11 ). Agreements made under a mutual mistake of fact (Sec. 20 ). Agreements the consideration or object of which is unlawful (Sec. 23 ). Agreements the consideration or object of which is unlawful in part (Sec, 24). Agreements made without consideration (Sec. 25 ) Agreements in restraint of marriage (Sec. 26 ). Agreements in restraint of trade (Sec. 27 ). Agreements in restraint of legal proceedings (Sec. 28 ). Agreements the meaning of which is uncertain (Sec. 29 ). Agreements by way of wager (Sec. 30 ). Agreements contingent on impossible events (Sec. 36) Agreements to do impossible acts (Sec. 56 ) In case of reciprocal promises to do things legal and also other things illegal, the second set of reciprocal promises is a void agreement (Sec. 57).

5. Wagering agreement 5 A wager is an agreement between two parties by which one promises to pay money or money's worth on the happening of some uncertain event in consideration of the other party's promise to pay if the event does not happen. Thus if A and B enter into an agreement that A shall pay B R 100 if it rains on Monday, and that B shall pay A the same amount if it does not rain, it is a wagering agreement.

6. Void contracts 6 1. A contingent contract' is a contract to do or not to do something, if some event, collateral to such contract does or does not happen (Sec. 31). Example . A contracts to pay B a sum of money when B marries C. C dies without beingmarried to B. The contract becomes void . 2 . A voidable contract becomes void when the party whose consent is not free repudiates the contract. Example . A, by misrepresenting certain facts to B, enters into a contract with B. B comes to know of the misrepresentation and repudiates the contract. When B repudiates the contract, it becomes void . 3. A contract becomes void by supervening impossibility or illegality(Sec. 56, para 2). Example . A contracts to take in cargo for B at a foreign port. A's Government afterwards declares war against the country in which the port is situated. The contract becomes void when war is declared.

7. Consideration or object is unlawful 7 A contract may be man absolute contract, or a contingent contract, An absolute contract is one in which the promisor binds himself to performance in and event without any conditions. Contingent means that which is dependent on something else A contingent contract is a contract to do or not to do something if some event, collateral to such contract, does or does not happen (Sec. 31) Example. (a) A contracts to pay Rs . 10,000 it's house is burnt. This is a contingent There are three essential characteristics of a contingent contract Its performance depends upon the happening or non happening in future of some event The event must be uncertain. If the event is bound to happen and the contact has got to beperformed in any case, it is not a contingent contract. The event must be collateral Example. There was a contract for the sale of American parachute cloth by A to B The goods were to be delivered when they arrived. A falled to give delivery and I sued for damages for breach. A pleaded that the contract was a conditional one and as the goods had not arrived he had no obligation to give delivery. Hell, the contract was an absolute one and the obligation of A was not contingent upon the arrival of the goods