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Lawful consideration and object
The document discusses several cases related to unlawful consideration in contracts. It summarizes a case where a transport company failed to deliver a consignment due to a cyclone within the 30 day claim period specified in the contract. The court found this condition void under the Carriers Act as the date of arrival may not be known. It also summarizes a case where a transport corporation allowed continuous private operation on a route through nominee permits, which was found to be an illegal activity not allowed under the Motor Vehicles Act. The document establishes that any contractual consideration or condition that is unlawful, against public policy, or aims to defeat provisions of law is void under the Indian Contract Act.
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Lawful consideration and object
- 2. “Every agreement of whichthe object or consideration is unlawful is void”
- 3. Unlawful Consideration • Forbiddenby the law • Defeat of the provision of law • Defeat of any rule for the time being in force in India • Fraudulent • Injury to the person or property of another • Immoral • Oppose to public policy
- 4. M.G. Brothers LorryServices v. M/s Prasad Textiles • A transport company • Consignment for Mr. Prasad • Failed to deliver the consignment due to cyclone • Prasad did not move its claim within 30 days
- 5. Terms of Contract •No suit lie against the firm of any consignment without claim • Claim should be made within 30 days from the date of booking or from the date of arrivals of consignment
- 6. The Carriers Act,1865 • Notice should be given in written of the loss or injury before institution of the suit • Within 6 months of the time when the loss or injury came to knowledge of the plaintiff
- 7. Judgment • As perthe condition of Way Bill notice should be given within the 30 days • Date of arrival may not be known • Condition 15 of Way Bill avoid the liability • The Carrier Act, 1865 bypass the provision
- 8. Indian Contract Act,1872 • Unaware of the arrival of the good • Condition 15 is void • “NO CLAIM HAS BEEN MADE”
- 9. Brij Mohan Pariharv. State Road Transport Corporation • Agreement with MPRTC • Nominee on the route Gwalior to Chinor via Dabra for 5 year (23-12-1982) • Route was under Motor Vehicle Act,1939 • Allow temporary permit • Liable to pay nominee fees and additional taxes • Corporation invite tender for private operators
- 10. Judgment • Unauthorized traffickingpermit as per section 42 and 59 • Corporation must surrender if they cannot issue permit • Allowing continuous permission as a nominee is an illegal activity