CHAPTER NO.3 (Consideration and object)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.3 (Consideration and object)

Q. Unlawful consideration?
Unlawful consideration: The consideration in b/w two parties on any unlawful object so the consideration of any party in the unlawful object is unlawful consideration . it is defined in contract act section 10:

Causes of unlawful consideration
1)Prohabited by law: If any action which is forbidden by law it will be unlawful consideration .
e.g:If Mr Adil wants to use the car of Mr Ali for th epurpose of murder. For the consideration for b/w these two person is illegal according to islam & its unlawful is well.
2) Fraudulent Case: If the object of a agreement is unlawful & confused then consideration is also unlawful.
e.g:MR Zaid & MR Akram enters in to a agreement then they will divided the money acquired by fraud equll. so again the agrement is void.
3) Immoral: In case of immoral act ,greement is void & can not be enforced by law.
e.g: A married women was given money to obtain divorce from her husband and then to marry the lender .Held ,the agreement was imoral and the lender could not recover the money.
4) Injury to other person: If a agreement involved & injury to any other person for any property .fincial property is void.
e.g: If Mr A & B jointly made an agreement to kill Mr c for the purpose of property ot any financial profit so the consideration is this agreement is unlawful.
5) Against the public policy: In the case also the object or consideration of an agreement is said to be unlawful . There are certain clases of act which are said to be against the public policy.
e.g: The agreement to influence judges.
/ The agreement with an alien enemy.
6)Nature of agreement : The consideration or object of an agreement is unlawful if it is of such nature that if it is permitted . it would defeat the provision of law.