Under Section 23, the consideration or object of an agreement is unlawful if
AIt is generated by chance
BIt involves trade across state borders
CIt is forbidden by law; or its allowance would defeat the provisions of any law; or it is fraudulent; or involves injury to person or property; or the court regards it as immoral or opposed to public policy
DIt is uneconomical from the parties' perspective
Answer & Solution
Correct answer: C. It is forbidden by law; or its allowance would defeat the provisions of any law; or it is fraudulent; or involves injury to person or property; or the court regards it as immoral or opposed to public policy
Section 23 lists five disqualifications. If any applies, the agreement is void. Public policy is a flexible head; Indian courts have used it to strike down agreements opposed to morality or essential statutes.
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