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A, B and C enter into an agreement for the division among them of gains acquired, or to be acquired, by…

Illustration (e) to section 23 states: "The agreement is void, as its object is unlawful." Section 23 treats an object that "is fraudulent" as unlawful, and "every agreement…

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A, B and C enter into an agreement for the division among them of gains acquired, or to be acquired, by them by fraud. What is the status of the agreement?

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Correct answer D

Illustration (e) to section 23 states: "The agreement is void, as its object is unlawful." Section 23 treats an object that "is fraudulent" as unlawful, and "every agreement of which the object or consideration is unlawful is void". The whole purpose of sharing the proceeds of fraud is tainted, so the law does not save the part dealing with gains already made, and none of the parties can enforce it against the others.

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