Test: Legality of Objects - CLAT PG MCQ

Contracts for the sale of public offices are deemed unlawful and void because they compromise the integrity of public service. Such agreements can lead to the selection of unqualified individuals for important positions, which undermines public trust and the effective functioning of government. This principle safeguards the public interest by ensuring that offices are filled based on merit rather than financial transactions.

An agreement not to engage in a similar business after selling goodwill is valid if the restraint is reasonable in duration and geographic scope. This exception acknowledges the necessity of protecting business interests while balancing public policy on competition.

An agreement to perform an act that is inherently impossible is void because it cannot be fulfilled under any circumstances. This principle protects parties from being bound to obligations that are unattainable, ensuring that the law only enforces realistic and feasible agreements.

An agreement with partly unlawful consideration is void because, if any part of the consideration is unlawful, the entire agreement is rendered unenforceable. This principle ensures that the law does not sanction agreements that involve illegal activities, maintaining the integrity of contractual obligations.

An agreement to suppress criminal charges is void because it directly contradicts public policy. Such contracts undermine the justice system and promote illegal behavior, which the law seeks to prevent. This illustrates the importance of upholding the legal system and ensuring that justice is not obstructed for personal gain.

A wagering agreement is based on an uncertain future event where both parties risk losing or gaining a specified amount of money. It is characterized by the mutual chance of profit and loss, which differentiates it from other types of contracts that may involve insurable interests or cooperative ventures.

An agreement may be deemed void if it undermines the provisions of law, regardless of whether it is explicitly forbidden. For instance, if a person barred from purchasing their own property enlists another to buy it for them, this agreement would be void because it circumvents the law’s intent, illustrating how legal provisions must be upheld.

Generally, agreements made without consideration are void, but there are exceptions, such as agreements made in writing and registered, or those that are in favor of a party. This rule protects parties from being bound by informal arrangements that lack sufficient legal backing.

Unfair, unreasonable, or unconscionable dealings are characterized by the exploitation of a significant imbalance in bargaining power. When one party takes advantage of another’s vulnerable position, the agreement may be deemed void. This principle aims to protect individuals from being taken advantage of in situations where they lack equal negotiating strength, emphasizing the need for fairness in contractual agreements.

Agreements that are formed with the intent to defraud others are inherently void. This includes any contracts where the parties conspire to mislead or deceive for personal gain, which the law does not tolerate. Protecting individuals from fraudulent schemes is vital for maintaining integrity in legal agreements.

An agreement is void if its purpose or consideration is deemed immoral according to societal standards at a given time. For instance, contracts that involve illegal activities, such as renting a vehicle for illicit purposes, are considered void as they contradict accepted moral principles, reflecting society’s evolving views on morality.

An agreement is deemed void if it involves an act that is prohibited by law or punishable under criminal law. For example, if a loan is granted for a purpose that violates specific legislation, such as funding a marriage that contravenes child marriage laws, that agreement becomes unenforceable. This principle underscores the importance of legality in contractual agreements, ensuring that parties do not engage in or benefit from illegal activities.

An agreement is considered void if it contradicts public policy, which includes agreements to suppress criminal charges, selling public offices, or engaging in immoral activities like marriage brokerage contracts. However, legal and socially accepted business transactions do not fall under these categories and are generally enforceable, as they contribute positively to societal and economic functioning. This distinction is crucial for maintaining ethical standards in both personal and business dealings.

An agreement made without consideration is generally void according to Section 25 of the Indian Contract Act. This means that if one party promises to pay money or provide a benefit without receiving anything in return, such as the example of a promise to pay Rs. 5,000 to a friend without any exchange, the agreement lacks legal enforceability. This reflects the principle that contracts require a mutual exchange of value to be valid. Interestingly, there are exceptions where an agreement made without consideration can still be enforceable, such as in the case of a written promise or if it is made in the context of a charity.

Agreements in restraint of trade are deemed void under Section 27 of the Indian Contract Act. This includes any agreement that restricts an individual's right to conduct their business or profession. The example of manufacturers coming together to fix prices collectively represents a restraint on trade because it limits competition and can lead to unfair market practices. Courts generally disallow such agreements to ensure that the market remains competitive and that consumers benefit from fair pricing. An interesting fact is that while agreements that promote business cooperation can be valid, those that disguise themselves as regulations but effectively restrain trade are not permissible under the law.