Legality of Object in Contracts
Legality of Object in Contracts
1. What is “Object” in a Contract?
The object of a contract refers to the purpose or consideration for which the contract is made.
It’s what the parties intend to achieve or the reason for entering into the contract.
Object can be a service, goods, money, or any lawful purpose.
2. Importance of Legality of Object
For a contract to be valid and enforceable, the object must be lawful.
If the object is illegal, immoral, or against public policy, the contract is void.
Legality of object ensures contracts do not violate laws or harm society.
3. Conditions for Legality of Object
Under the Indian Contract Act, 1872 (Section 23):
The object of the contract must not be forbidden by law.
The object must not be fraudulent, or involve injury to person or property.
The object must not be immoral or opposed to public policy.
4. Examples of Illegal Objects
Contract to commit a crime (e.g., smuggling, theft).
Contract involving fraud or cheating.
Agreement to defraud creditors.
Contracts promoting immorality or gambling (if illegal in the jurisdiction).
Contracts restraining legal proceedings (sometimes against public policy).
5. Effect of Illegal Object
Contract is void from the beginning (void ab initio).
No party can enforce the contract or claim damages.
If one party has performed, restitution may be complicated and sometimes denied.
6. Relevant Case Law
🏛️ Gherulal Parakh v. Mahadeodas Maiya (1959)
The Supreme Court held that if the object of an agreement is against public policy or illegal, the contract is void.
The object must not contravene any statute or public interest.
🏛️ M.C. Chockalingam v. Union of India (1957)
The Court ruled that contracts with illegal objectives cannot be enforced even if parties are willing.
🏛️ Nathulal v. Neki (1939)
Emphasized that contracts with illegal or immoral objects are null and void.
🏛️ Farishtay v. Commissioner of Police (1949)
Contract to commit an unlawful act (like bribery) is void due to illegal object.
7. Distinction Between Object and Consideration
Object: The purpose of the contract.
Consideration: Something of value exchanged.
Both must be lawful for a valid contract.
8. Exceptions
Sometimes, the court may enforce a contract with minor illegality if the illegal part is severable and the rest is lawful.
Contracts with unlawful object but where one party is innocent may allow limited relief.
9. Summary Table
| Aspect | Explanation | Effect if Illegal |
|---|---|---|
| Object | Purpose of contract | Contract is void if illegal |
| Legality Conditions | Not against law, morality, or policy | No enforceability |
| Case Law | Gherulal Parakh, M.C. Chockalingam | Reinforces void nature of illegal object |
| Distinction | Object vs Consideration | Both must be lawful |
10. Conclusion
Legality of object is a fundamental requirement for any valid contract. If the contract’s object is illegal, immoral, or against public policy, the contract is void and unenforceable. Courts protect societal interests by refusing to uphold contracts that violate laws or ethics.
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