Illegal Agreement Indian Contract Act

As a professional, it`s important to understand the impact of illegal agreements under the Indian Contract Act of 1872. This act defines an agreement as a legally binding arrangement between two or more parties. However, not all agreements are enforceable under the law.

An illegal agreement is one that violates a law in force or goes against public policy. The Indian Contract Act provides that any agreement that involves an illegal activity or consideration is void and unenforceable. Such agreements are considered to be against the public interest and, therefore, not recognized by the law.

Illegal agreements come in various forms, such as:

1. Agreements that are against public policy: These include agreements that promote illegal activities or are immoral or indecent in nature. For instance, an agreement to distribute illegal drugs or to engage in prostitution would be deemed illegal.

2. Agreements that are in restraint of trade: These agreements typically restrict a party from carrying out their business or trade. For instance, agreements that prevent an employee from working for a competitor after leaving their current job are illegal.

3. Agreements that involve fraud or misrepresentation: These agreements are formed through deceit or false representations. For example, an agreement to sell a product that is not fit for purpose or that does not exist is a fraudulent agreement.

4. Agreements that involve illegal consideration: This includes agreements that involve the exchange of illegal goods or services, such as bribes or kickbacks.

In conclusion, illegal agreements are unenforceable under the Indian Contract Act. They are considered to be against public interest and, therefore, not recognized by the law. It`s important for individuals and businesses to be aware of the implications of illegal agreements and to always ensure that their contracts are lawful and valid. As a professional, it`s crucial to use appropriate keywords and phrases to optimize search engine visibility on this topic, such as “illegal agreements India” and “contract law.”