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Question
Collateral transactions of an illegal agreement are _________.
Collateral transactions of an illegal agreement are _________.
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Solution
The correct option is C illegal
The consideration or object of an agreement is lawful unless it is forbidden by law or is of such a 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. Furthermore, an illegal contract though resembling the void contract in that it also has no legal effect as between the immediate parties has this further effect that even transactions collateral to it became tainted with illegality.
The consideration or object of an agreement is lawful unless it is forbidden by law or is of such a 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. Furthermore, an illegal contract though resembling the void contract in that it also has no legal effect as between the immediate parties has this further effect that even transactions collateral to it became tainted with illegality.
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