Lawful consideration and object (s. 23) and the void agreements (ss. 24, 26-30): restraint of marriage, trade and legal proceedings, uncertainty, wager

LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit II: Unlawful consideration and object. · LLB · 60 min

Section 10 requires a lawful consideration and a lawful object; s. 23 says when they are unlawful, and ss. 24-30 add a list of agreements that are void even though nothing unlawful is involved. This lecture covers topics 2 and 3 of the unit: the six heads of s. 23 with the Act's eleven illustrations and the heads of public policy; restraint of marriage (s. 26, Lowe v. Peers), restraint of trade (s. 27, Madhub Chunder, Nordenfelt, Niranjan Shankar Golikari, Krishan Murgai), restraint of legal proceedings (s. 28), uncertainty (s. 29) and wager (s. 30, Gherulal Parakh); and it ends with the effect of void, voidable, valid, illegal, unlawful and uncertain agreements. Thirteen past-paper questions sit on this ground.

Objectives

State the six heads under which a consideration or object is unlawful under s. 23 and apply the Act's illustrations.
Explain the recognised heads of public policy and the Gherulal Parakh warning against inventing new ones.
Analyse ss. 26, 27, 28 and 29, with the Indian departure from the English rule of reasonableness in restraint of trade.
Define a wagering agreement, list its essentials and exceptions, and distinguish it from a contingent contract and from insurance.
Distinguish void, voidable, illegal, unlawful and uncertain agreements and state the consequences of each, including restitution under s. 65.

Slides

Section 23: what considerations and objects are lawful, and what not
Heads 1-4: forbidden by law, defeating a law, fraudulent, injurious
Heads 5 and 6: immoral, and opposed to public policy
Section 24: unlawful in part; severance under ss. 57 and 58
Section 26 (restraint of marriage) and s. 29 (uncertainty)
Section 27: restraint of trade - the Indian rule and the English contrast
Section 27 in employment, partnership and exclusive dealing
Section 28: restraint of legal proceedings
Section 30: agreements by way of wager
Wager v contingent contract; the effects of void, voidable, illegal, unlawful and uncertain agreements
How the examiner asks it

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