Section 23 (already discussed) deals with cases in which object or/and consideration are unlawful. Now we come to those cases where object/consideration are unlawful in part
The Dowry Prohibition Act, 1961 had defined dowry as property given directly or indirectly by one party to another, by parents of one party to either party at or before or after the marriage or in consideration of marriage. The Dowry Prohibition (Amendment) Act, 1984 has changed the definition of dowry slightly. The new Act has defined dowry as property given in connection (not consideration) with marriage. The Amendment Act however clarifies that presents given to the bride or the bridegroom at the time of marriage voluntarily, without a demand being made, will not be treated as dowry. But these presents will have to be carefully listed in accordance with the rules of the Amendment Act. In this case consideration is wholly illegal.
But what is the position if the same agree-ment contains, both 1egal and illegal terms, i.e., it is partly legal and partly illegal? Sections 24, 57 and 58 of and 58 of the Contract Act provide for such cases. Accordingly, if the object or consideration is partially unlawful, the following rules will apply:
1. When an agreement contains several distinct promises to do things legal and also other things illegal, and the legal part cannot be separated from the illegal part (i.e., the consideration for different promises is a single sum of money), the whole agreement is illegal and void (Sec.24).
Illustrations
(a) A promises to superintend, on behalf of B, a legal manufacturer of indigo and an illegal traffic in other articles. B promises to pay to A a salary of Rs. 10,000 a year. The agreement is void and unlawful. Here a part of the object is legal and a part is illegal which are not severable because the consideration for both promises is a single sum (illustration to Section 24).
2. Where there is reciprocal promise to do things legal and also other things illegal and the legal part can be separated from the illegal part (i. e., there is a separate consideration for different promises), the legal part is a contract and the illegal part is a void agreement (Sec. 57).
Illustration. A and B agree that A shall sell B a house for Rs 10,000, but that, if B uses it is as a gambling house he shall pay A Rs50,000 for it. The first set of reciprocal promises, namely, to sell the house and to pay Rs10,000 for it is a contract. The second set is for an unlawful. object, namely, that B may use the house as a gambling house, and is a void and illegal agreement. (Illustration to Section 57). Here it is to be noted that the two promises are distinct and severable with a separate consideration for each such promise. The promises are thus independent of each other except that they form part of the same contract.
3. In the case of an alternative promise, one branch of which’ is legal and the other. illegal, the illegal branch alone can be enforced (Sec. 58).
Illustration. A and B agree that A shall pay B Rs1,000 for which B shall afterwards deliver to. A either rice or smuggled opium. This is a valid contract to deliver rice and a void and unlawful agreement as to opium (Illustration to Section 58).
The Dowry Prohibition Act, 1961 had defined dowry as property given directly or indirectly by one party to another, by parents of one party to either party at or before or after the marriage or in consideration of marriage. The Dowry Prohibition (Amendment) Act, 1984 has changed the definition of dowry slightly. The new Act has defined dowry as property given in connection (not consideration) with marriage. The Amendment Act however clarifies that presents given to the bride or the bridegroom at the time of marriage voluntarily, without a demand being made, will not be treated as dowry. But these presents will have to be carefully listed in accordance with the rules of the Amendment Act. In this case consideration is wholly illegal.
But what is the position if the same agree-ment contains, both 1egal and illegal terms, i.e., it is partly legal and partly illegal? Sections 24, 57 and 58 of and 58 of the Contract Act provide for such cases. Accordingly, if the object or consideration is partially unlawful, the following rules will apply:
1. When an agreement contains several distinct promises to do things legal and also other things illegal, and the legal part cannot be separated from the illegal part (i.e., the consideration for different promises is a single sum of money), the whole agreement is illegal and void (Sec.24).
Illustrations
(a) A promises to superintend, on behalf of B, a legal manufacturer of indigo and an illegal traffic in other articles. B promises to pay to A a salary of Rs. 10,000 a year. The agreement is void and unlawful. Here a part of the object is legal and a part is illegal which are not severable because the consideration for both promises is a single sum (illustration to Section 24).
2. Where there is reciprocal promise to do things legal and also other things illegal and the legal part can be separated from the illegal part (i. e., there is a separate consideration for different promises), the legal part is a contract and the illegal part is a void agreement (Sec. 57).
Illustration. A and B agree that A shall sell B a house for Rs 10,000, but that, if B uses it is as a gambling house he shall pay A Rs50,000 for it. The first set of reciprocal promises, namely, to sell the house and to pay Rs10,000 for it is a contract. The second set is for an unlawful. object, namely, that B may use the house as a gambling house, and is a void and illegal agreement. (Illustration to Section 57). Here it is to be noted that the two promises are distinct and severable with a separate consideration for each such promise. The promises are thus independent of each other except that they form part of the same contract.
3. In the case of an alternative promise, one branch of which’ is legal and the other. illegal, the illegal branch alone can be enforced (Sec. 58).
Illustration. A and B agree that A shall pay B Rs1,000 for which B shall afterwards deliver to. A either rice or smuggled opium. This is a valid contract to deliver rice and a void and unlawful agreement as to opium (Illustration to Section 58).
Which object or Consideration is Unlawful in Part?
![Which object or Consideration is Unlawful in Part?]()
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