Section 23

Section 23 of the Indian Contract Act, 1872, outlines the considerations and objects that are lawful and those that are not. According to this section, 'The consideration or object of an agreement is lawful, unless- 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. In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.' The section further explains that if a part of a single consideration for one or more objects, or if the consideration for an object is in part lawful and in part unlawful, the agreement is void, unless the lawful consideration can be separated from the unlawful. The court in the case of Gherulal Parakh v. Mahadeodas Maiya and Co. held that an agreement to do an act which is prohibited by law is void and unenforceable.