Question

An agreement may be unlawful because it is ____________.

• A. Illegal
• B. Immoral
• C. Opposed to public policy
• D. Any of the above three cases

Answer 1

The correct option is D Any of the above three cases

As per section 23 of the act, the consideration or object of an agreement is lawful, unless-

-it is forbidden by law; or

-is of such nature that, if permitted, it would defeat the provisions of any law; or

-is fraudulent; or

-involves or implies injury to the person or property of another or;

-the Court regards it as immoral, 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.