Section 96

Section 96 of the Indian Contract Act, 1872, outlines what considerations and objects are lawful and what 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. The actual statutory language is: '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.' Judicial interpretations have underscored that the consideration or object must not be against public policy or morality.