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    Question

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

    agreement is declared void if its consideration or object is: 
    A Simply disadvantageous to one of the parties Correct Answer Incorrect Answer
    B Opposed to public policy or if the Court regards it to be immoral or opposed to law Correct Answer Incorrect Answer
    C Not explicitly mentioned in writing by the parties Correct Answer Incorrect Answer
    D Subject to any condition precedent for future performance Correct Answer Incorrect Answer
    E Dependent on the discretion of a government official Correct Answer Incorrect Answer

    Solution

    Section 23 states: "The consideration or object of an agreement is unlawful if—(i) 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.

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