by In contract law, the legality of object and consideration are two fundamental concepts that must be present in any agreement for it to be valid and enforceable.
The object of a contract refers to the purpose or the subject matter of the agreement, while the consideration is the price or benefit that each party to the agreement receives or expects to receive in exchange for their promise.
It is important to note that an agreement with an unlawful object or consideration is not only void but also illegal. This means that the parties to such an agreement cannot enforce it in a court of law, and any benefits obtained under the agreement must be returned.
Under the Indian Contract Act, 1872, for an agreement to be valid, it must have a lawful object and lawful consideration. The following are the legal provisions related to the legality of object and consideration:
- Lawful object: According to Section 23 of the Indian Contract Act, an agreement is void if its object or consideration is unlawful. An object is said to be unlawful when it is prohibited by law or is immoral or opposed to public policy. For example, an agreement to commit a crime or to promote illegal activities is an agreement with an unlawful object and is void.
- Lawful consideration: According to Section 25 of the Indian Contract Act, an agreement is void if its consideration or object is unlawful. Consideration is said to be unlawful when it involves the doing of an act that is illegal, immoral, or opposed to public policy. For example, an agreement to sell drugs in exchange for money is an agreement with an unlawful consideration and is void.
Legality of Object and Consideration Features
The legality of object and consideration are important features of a valid and enforceable contract. Here are some of their key features:
- Lawful Object: The object of a contract refers to the purpose or the subject matter of the agreement. A lawful object means that the purpose or subject matter of the agreement is not prohibited by law, is not immoral, and is not against public policy. The object of a contract must be legal and must not be against the principles of morality or public policy.
- Lawful Consideration: The consideration in a contract refers to the price or benefit that each party to the agreement receives or expects to receive in exchange for their promise. Lawful consideration means that the benefit or price that each party expects to receive must be legal, and must not be against the principles of morality or public policy.
- Void Agreements: An agreement is void if the object or consideration of the contract is unlawful. Void agreements are those agreements that are not enforceable by law, and the parties to the agreement cannot claim any legal remedy for their performance.
- illegality: An agreement with an unlawful object or consideration is not only void but also illegal. This means that the parties to such an agreement cannot enforce it in a court of law, and any benefits obtained under the agreement must be returned.
- Public Policy: An agreement with an object or consideration against public policy is void. The public policy of a country is determined by its laws and is based on the principles of fairness, equity, and justice.
