In which of these cases consideration and objects are considered unlawful?
A
When it is fraudulent.
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B
When it is immoral and against public policy.
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C
When it is forbidden by law.
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D
All the three cases.
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Solution
The correct option is D All the three cases. As per section 23 of Indian Contract Act, 1872, all those agreements, the consideration or object of which is unlawful i.e. it is forbidden by law; 14 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.