The document discusses unlawful agreements under Indian contract law. It states that for an agreement to be considered a contract, it must satisfy conditions like lawful consideration, competent parties, and lawful object. Agreements with consideration or objects that are forbidden by law, defeat the provisions of any law, are fraudulent or injurious, or against public policy are unlawful and void. Some examples of unlawful agreements provided include dividing gains acquired by fraud and obtaining illegal employment in return for payment. The document also discusses how agreements can be void if any part of the consideration or object is unlawful.

1. UNLAWFUL
AGREEMENTS
-SHIVANI SHARMA, ASSISTANT PROFESSOR
-SARDAR PATEL SUBHARTI INSTITUTE OF LAW

2. CONTRACT
As per s. 2(h) of the Indian Contract Act 1872, a contract is an agreement enforceable by law.
Section 10 of the Indian Contract Act states:
“All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful
consideration and with a lawful object, and are not hereby expressly declared to be void.”
An agreement becomes a contract when the following conditions are satisfied:
1. There should be some lawful consideration for it.
2. The parties must be competent to contract.
3. The consent of the parties is free.
4. Their object is lawful.

3. UNLAWFUL OBJECT AND
CONSIDERATIONS
Section – 23 - “What consideration and objects are lawful, and what not. –
The consideration or object of an agreement is lawful, unless
1. it is forbidden by law; or (Nandlal v Thomas)
2. is of such a nature that, if permitted, it would defeat the provisions of any law; (Abdul Jabbar v
Abdul Muthalif)
3. or is fraudulent; (Scott v BDMC)
4. or involves or implies, injury to the person or property of another; (Sujan Singh v Mohkam Chand)
5. or the Court regards it as immoral, (Fender v St. John Mildmay) or opposed to public policy.
In each of these cases, the consideration or object of an agreement is said to be unlawful. Every
agreement of which the object or consideration is unlawful is void.”

4. Heads of Public Policy:
1. Trading Agreement with enemy
2. Trafficking in Public places
3. Interference with administration of justice
4. Stifling Prosecution
5. Marriage Brokerage Contracts

5. A agrees to sell his house to B for 10,000 rupees. Here, B’s promise to pay the
sum of 10,000 rupees is the consideration for A’s promise to sell the house and
A’s promise to sell the house is the consideration for B’s promise to pay the
10,000 rupees. These are lawful considerations.
A, B and C enter into an agreement for the division among them of gains
acquired or to be acquired, by them by fraud. The agreement is void, as its
object is unlawful
A promises to obtain for B an employment in the public service and B promises
to pay 1,000 rupees to A. The agreement is void, as the consideration for it is
unlawful.
ILLUSTRATIONS

6. Section – 24 –
“Agreements void, if considerations and objects unlawful in part.—If any part of a single
consideration for one or more objects, or any one or any part of any one of several considerations
for a single object, is unlawful, the agreement is void.”
Illustration:
“A promises to superintend, on behalf of B, a legal manufacturer of indigo, and an illegal traffic in
other articles. B promises to pay to A a salary of 10,000 rupees a year. The agreement is void, the
object of A’s promise, and the consideration for B’s promise, being in part unlawful. A promises to
superintend, on behalf of B, a legal manufacturer of indigo, and an illegal traffic in other articles.
B promises to pay to A a salary of 10,000 rupees a year. The agreement is void, the object of A’s
promise, and the consideration for B’s promise, being in part unlawful.”
UNLAWFUL CONSIDERATION IN PARTS

7. UNLAWFUL AND VOID AGREEMENTS
Sections 23 of the Indian Contract Act deal with unlawful agreements.
Section 2(g) of the Indian contract deal with void agreements. As per s.
2(g), “An agreement not enforceable by law is void.”
The Contract draws distinction between an agreement which is only void
and the one in which the consideration or object is also unlawful.
An illegal agreement is one which is actually forbidden by the law; but a
void agreement may not be forbidden, the law merely say that if it is made,
the courts will not enforce it.
Thus every illegal contract is also void but a void contract is not necessarily
illegal.