Section 126

If a contingent contract is made to do an act which is impossible or unlawful, the contract is void. Section 36 of the Indian Contract Act, 1872, states that the consideration or object of an agreement is unlawful if it is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the court regards it as immoral, or opposed to public policy. The courts have held that if the performance of the contract would require an act that is against the law or public policy, the contract is not enforceable. For instance, a contract to smuggle goods into the country is void because it involves an unlawful act.