Site navigation

Which of these defects makes the consideration or object of an agreement unlawful under Section 23 of the Indian Contract Act, 1872?

Question and options

Which of these defects makes the consideration or object of an agreement unlawful under Section 23 of the Indian Contract Act, 1872?

  1. Both parties mistook an essential fact

  2. Its performance is prohibited by a statute

  3. There is no consideration for the promise

  4. One party's consent was caused by fraud

Answer and explanation

Correct answer: B - Its performance is prohibited by a statute

Section 23 of the Indian Contract Act, 1872 makes consideration or an object unlawful if, among other things, it is forbidden by law (for example, performance prohibited by a statute), and Section 24 then makes the agreement void. Consent caused by fraud makes a contract voidable under Section 19, while lack of consideration (Section 25) and a mutual mistake of essential fact (Section 20) make an agreement void without making it unlawful.

Practice for these exams

Related exam syllabi

More solved explanations in Lawful object & void agreements