Question
Rahul makes a contract with Ajay to beat his business
competitor. This is an example ofSolution
Contract Act An illegal agreement is forbidden by law (as per section 23 of the Indian Contract Act, 1872). Agreements are said to be illegal if the performance or formation of the agreement causes the parties to engage in activity that is illegal. The illegality must relate directly to the subject matter creation of the contract and not some intervening circumstance. An illegal agreement is not a contract at all, and courts will not enforce them. Thus, they are said to be “forbidden by law” or “unenforceable”.
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