Question

Under Section 23 of the Indian Contract Act, 1872, an

Q: Answer-Under Section 23 of the Indian Contract Act, 1872, an agreement is declared void if its consideratio...

Section 23 states The consideration or object of an agreement is unlawful ifi it is forbidden by law or ii it is of such a nature that if permitted, it would defeat the provisions of any law or iii it is fraudulent or iv it involves or implies injury to the person or property of another or v the Court regards it as immoral or opposed to public policy. This section embodies the principle ex turpi causa non oritur actio from a dishonourable cause no action arises. The focus is not merely on disadvantage but on conduct that violates legal norms, public policy, or morality. In S. Narayanan v. Jayaveeri Investments 2004, the Supreme Court clarified that agreements opposed to public policy cover a broad range of transactions that conflict with accepted principles of justice and public welfare.

agreement is declared void if its consideration or object is:

A Simply disadvantageous to one of the parties

B Opposed to public policy or if the Court regards it to be immoral or opposed to law

C Not explicitly mentioned in writing by the parties

D Subject to any condition precedent for future performance

E Dependent on the discretion of a government official

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SEBI Grade A Legal

Under Section 23 of the Indian Contract Act, 1872, an

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