Indian Contract Act, 1872

Section 133

Consideration must not be unlawful

⚡ Quick Answer Reference: Section 133 Contract Act

Provision: Section 133 of Contract Act
Act: Indian Contract Act, 1872
Classification: contract
Jurisdiction: India
Summary: This section states that an agreement's consideration or object is unlawful if it goes against the law, public policy, or causes harm to someone or their property. The court may also consider it immoral if it goes against public policy.

Statutory Content

What does Section 133 of Contract Act say?

According to Section 133 of the Indian Contract Act, 1872, '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 consideration must not be against the law or public policy. The Supreme Court in the case of Zoroastrian Co-operative Housing Society Ltd. v. District Registrar, (2005) 5 SCC 632, held that a consideration which is opposed to public policy is not a valid consideration.

Indian StandardSection 133, Indian Contract Act, 1872

Bluebook (21st ed.)Indian Contract Act, 1872, § 133 (India)

Court Pleading StandardSection 133 of the Indian Contract Act, 1872

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

✓ VERIFIED FOR LEGAL ACCURACYReviewed & certified by Advocate Arjun Choudhury (Bar Council ID: D/8734/2015).

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Section Meaning & Purpose

What does Section 133 of Contract Act mean?

Plain English Explanation

This section states that an agreement's consideration or object is unlawful if it goes against the law, public policy, or causes harm to someone or their property. The court may also consider it immoral if it goes against public policy.

Practical Interpretation

In real-life situations, this section means that if a contract involves something that is against the law or public policy, it is not a valid contract. The court will look at the agreement and decide if it is lawful or not.

Core Legal Purpose

The core purpose of this section is to ensure that agreements are lawful and do not cause harm to anyone. It aims to protect the rights of individuals and uphold public policy.

Key Legal Elements

•The consideration or object of an agreement must not be forbidden by law.
•The consideration or object of an agreement must not be of such a nature that, if permitted, it would defeat the provisions of any law.
•The consideration or object of an agreement must not be fraudulent.
•The consideration or object of an agreement must not involve or imply injury to the person or property of another.

Practical Example

Practical Example of Section 133 Contract Act

Rajesh and Priya enter into a contract where Rajesh agrees to pay Priya ₹10,000 to not reveal a secret about Amit. However, this agreement is against public policy as it involves a bribe. The court will consider this agreement unlawful and may not enforce it.

Common Questions (FAQ)

Frequently Asked Questions about Section 133 Contract Act

Q: What is the punishment or consequence under Section 133 of Indian Contract Act, 1872?

This section is a procedural provision and does not prescribe a penal punishment. It only outlines the conditions under which an agreement is considered unlawful.

Q: Does this section apply to private individuals or public entities?

This section applies to both private individuals and public entities. It is a general provision that applies to all agreements, regardless of the parties involved.

Q: Is an offence under this section bailable or cognizable?

This section is a procedural provision and does not prescribe a penal punishment. Therefore, it is neither bailable nor cognizable.

Common Questions about Section 133 Contract Act

What is Section 133 of Contract Act?

Section 133 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Consideration must not be unlawful". In plain terms: This section states that an agreement's consideration or object is unlawful if it goes against the law, public policy, or causes harm to someone or their property. The court may also consider it immoral if it goes against public policy.

What are the elements of Section 133 of Contract Act?

The essential elements of Section 133 of Contract Act are: The consideration or object of an agreement must not be forbidden by law.; The consideration or object of an agreement must not be of such a nature that, if permitted, it would defeat the provisions of any law.; The consideration or object of an agreement must not be fraudulent..

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