Question

Under which of these circumstances an agreement become void and illegal _______________.

• A. When it is forbidden by law
• B. When it is avoidable at the option of the other party
• C. When it is not in writing
• D. When it is an unilateral contract

Answer 1

Answer: (A)

When it is forbidden by law

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.