If the object or consideration of an agreement is unlawful, then it becomes a ____________________.

Voidable agreement

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Void agreement

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Valid agreement

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All the three

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Solution

The correct option is B Void agreement
As per section 23 of the Contract Act, 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. In this case, the agreement becomes void ab initio and illegal.

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