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Contract Farming

Under which o...

Question

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

A

When it is forbidden by law

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B

When it is avoidable at the option of the other party

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C

When it is not in writing

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D

When it is an unilateral contract

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Solution

The correct option is D 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.

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