The Consideration or Object of an Agreement is Lawful Unless it is MCQ

In contract law, the term “consideration” refers to something of value that is exchanged between the parties to a contract. The consideration can be in the form of money, goods, services, or anything else that the parties agree upon. The object of an agreement, on the other hand, refers to the purpose for which the contract is formed.

Under the Indian Contract Act, 1872, the consideration or object of an agreement is lawful unless it is MCQ. MCQ stands for “illegal, immoral, or opposed to public policy.” In other words, if the consideration or object of an agreement is illegal, immoral, or opposed to public policy, the agreement is void and unenforceable.

Illegal Consideration:

Illegal consideration refers to a consideration that is prohibited by law. For example, if the consideration involves the commission of a crime or an act that is punishable by law, the agreement is illegal and unenforceable. Similarly, if the consideration involves an activity that is prohibited by law, such as gambling, the agreement is illegal.

Immoral Consideration:

Immoral consideration refers to a consideration that goes against public morals or decency. For example, an agreement to buy or sell illegal drugs would be immoral and unenforceable. Similarly, an agreement to engage in prostitution or any other immoral activity would also be immoral.

Opposed to Public Policy:

An agreement is said to be opposed to public policy if it goes against the interests of society. For example, an agreement to commit a fraud or to obstruct the course of justice would be opposed to public policy. Similarly, an agreement that restrains trade or limits competition would also be opposed to public policy.

Conclusion:

In conclusion, the consideration or object of an agreement is lawful unless it is MCQ. If the consideration or object is illegal, immoral, or opposed to public policy, the agreement is void and unenforceable. It is important for parties to a contract to ensure that the consideration and object of the agreement are legal and ethical to avoid any legal consequences in the future.