Section 23 The Indian Contract Act, 1872
Section 23 – The Indian Contract Act, 1872
Title: "What considerations and objects are lawful, and what not"
📜 Text of Section 23:
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.
The consideration or object of an agreement is not lawful if it falls under any of these categories.
✅ Meaning & Importance:
For a contract to be valid and enforceable, its consideration (something given in return) and object (purpose) must be lawful.
If the consideration or object is unlawful as per the above conditions, the contract is void and cannot be enforced.
📌 Examples of Unlawful Considerations/Objects:
Agreement to commit a crime or fraud (illegal).
Agreement to harm someone's reputation or property.
Agreements against morality or public interest (e.g., agreements for gambling or prostitution in some jurisdictions).
Agreements that evade taxes or other legal obligations.
🧑⚖️ Judicial Interpretation:
Courts often interpret public policy broadly to include contracts detrimental to society.
Even if not explicitly illegal, contracts that encourage corruption or obstruct justice may be void under this section.
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