Chartered Accountancy Session 1, Section B CPT Course Mercantile Law

Lecture 6 – Lawful Object and Consideration Quick Revision Notes

Unlawful Object or Consideration

“Consideration or object is unlawful if it is forbidden by law; or it would; if permitted defeat the provisions of any law or is fraudulent; or involves injury to the person or property

of another, or is immoral; or opposed to public policy.”

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Circumstances which make Object or Consideration unlawful

1. Forbidden by Law

2. Defeat of the provision of Law

3. Defeat of any rule for the time being in force in India

4. Fraudulent

5. Injury to the person or property of another

6. Immoral

7. Agreement opposed to public policy

Agreement opposed to public policy

1. Trading with enemy

2. Stifling Prosecution

3. Champerty Stifling Prosecution

4. Interference with the course of justice

5. Marriage Brokerage Contracts

6. Interest against obligation

7. Sale of public offices

8. Agreement for creation of monopolies

9. Agreement in restrain of marriage

10. Agreement in restrain of trade

11. Agreement in restrain of legal proceedings

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