Unlawful Consideration in an Agreement

Introduction:
Consideration is an essential element of a valid contract. It refers to something of value exchanged between the parties to a contract. However, there are certain situations where the consideration may be considered unlawful, rendering the agreement unenforceable by law. In this case, the unlawful considerations are outlined as follows:

Forbidden by Law:
If the consideration involves an act that is explicitly prohibited by law, the agreement is considered unlawful. This means that if the performance of the contract involves engaging in an illegal activity, such as drug trafficking or fraud, the consideration is deemed unlawful. Such agreements are against public policy and are unenforceable.

Fraudulent Consideration:
If the consideration is obtained through fraud or misrepresentation, it is considered unlawful. Fraudulent consideration refers to a situation where one party intentionally deceives the other party by providing false information or concealing material facts. If the agreement is based on such fraudulent consideration, it will be considered void and unenforceable.

Immoral Consideration:
Consideration that is immoral or against public policy is also considered unlawful. Immoral considerations refer to actions or promises that are contrary to accepted standards of morality. For example, an agreement to engage in illegal gambling or prostitution would involve immoral consideration. Such agreements are deemed unenforceable by law.

Very Expensive Consideration:
The consideration in an agreement can be considered unlawful if it is excessively expensive to the point of being unconscionable. An unconscionable contract is one that is extremely one-sided and unfair to one party, often due to the grossly unequal bargaining power between the parties. If the consideration is unreasonably high and takes advantage of the weaker party, it may be deemed unlawful and unenforceable.

Conclusion:
In conclusion, the consideration of an agreement is considered unlawful if it is forbidden by law, obtained through fraud or misrepresentation, against public policy or morality, or excessively expensive to the point of being unconscionable. These unlawful considerations render the agreement unenforceable by law and are deemed invalid. It is important for parties to a contract to ensure that their consideration is lawful and meets the required legal standards to ensure the enforceability of the agreement.