MEANING OF LAWFUL OBJECT IN CONTRACT LAW

An agreement to be a contract and for the application of contract law, along with other essential elements, its object and purpose must be lawful. Therefore, where an object of a contract lacks legality of object and consideration, it is never enforceable by contract law.

The object of an agreement is treated as lawful where-

i.It is not forbidden by law.

Example

Selling banned drugs without legal permission is unlawful.

ii. It does not defeat the provisions of law-in-force.

Example

Two companies secretly agree to avoid paying government taxes.

iii. It doe not involve or implies injury to others

iv. It is moral.

v. It is nor opposite to public policy and welfare of state.

A promises to obtain for B an a government post and B promises to pay Rs. 2 lakh to A. The agreement is void being unlawful object.

Example:

Rahul agrees to pay Suman Rs. 2,00,000 if Suman helps him obtain a government job through illegal influence.

Since obtaining a government job through bribery or illegal means is prohibited by law, the object of this agreement is unlawful. Therefore, the agreement is void.

IMPORTANCE OF LAWFUL OBJECT

To protect the society from unlawful activities is the basic aim of law and to fulfill such objective different laws are made and enforced. Contract law cannot be an exception. Therefore, where two or more person enter into a contract which object is unlawful, such contracts or dealing are prohibited and contract law does not give validity. An act, if it is prohibited, cannot be done through a contract. The importance of lawful object can be stated as follows:

i.It protects the time and efforts of courts.

Example

The law refuses to recognize contracts involving drug trafficking.

ii. It helps to prevent undesirable activities.

Example

A court will reject a lawsuit related to a gambling agreement prohibited by law.

iii. It keeps the good morals if people in a society.

Example

A fake investment contract designed to cheat investors is unenforceable.

iv. It saves the courts and state from involving in the acts which are prohibited.

Example

A contract promoting human exploitation cannot be enforced.

v. It protects the people and society from unlawful and fraudulent activities and transactions.

Example

A contract that threatens public safety will be declared void.

vi. It is an essential element of a valid contract. Therefore, until and unless the object of an agreement becomes lawful, the agreement is not enforceable by law.

Example

A contract for smuggling goods cannot become a valid contract. contract Agency means…

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