Legality of Object

Defination: A contract must have a lawful object. If the object of an agreement is the performance of an unlawful act, the agreement is unenforceable. As such both the object and the consideration of an agreement must be lawful, otherwise the agreement is void. When consideration/object is unlawful If it is forbidden by law Nature is such, if permitted, it would defeat provisions of law If it is fraudulent If it involves/ implies injury to the person or property of another If court regards it as immoral

Unlawful and Illegal Agreements

An unlawful agreement is not enforceable by law . It affects only the immediate parties and has no further consequences. An illegal agreement is not only void between immediate parties but has further effect that the collateral transactions to it also become tainted with illegality.

Every illegal agreement is unlawful , but every unlawful agreement is not necessarily illegal
Effects of illegality No action arises from a base cause The defendant is in a better position in cases of equal guilt

Agreements opposed to Public Policy

An agreement is said to be opposed to public policy when it is harmful to the public welfare. The following agreements are opposed to public policy. Agreements of trading with enemy Agreement to commit a crime Agreements which interfere with administration of justice Agreements in restraint of legal proceedings Trafficking in public offices and titles Agreements tending to create interest opposed to duty Agreements in restraint of parental rights Agreements restricting personal liberty Agreements in restraint of marriage Agreements to defraud creditors Agreements in restraint of trade

An agreement in restraint of trade is voidExceptions

Sale of goodwill Partners agreement Trade combination Manufactures in the similar line of business normally form associations to regulate business or to fix prices . But a combination which tends to create monopoly and which is against the public interest is void. Service contracts