If the subject matter of the contract or the consideration of a contract is prohibited by law, it no longer constitutes consideration or legitimate purpose. They then become illegal by nature. And therefore such a contract can no longer be valid. The essence of Article 24 is that the agreement is completely void if the illegal part of the agreement cannot be separated from the legal part. (It should be noted, however, that if the legal part is separable from the illegal part of an agreement, the legal part can be enforced.) If the illegal agreement has not been executed, neither party has the right to sue the other for damages or to demand the execution of the agreement. Once the contract has been executed, neither party can sue the other for damages or cancellation of the contract. As one of the principles of the contract, the meaning of lawful object can be defined as an object or act that is authorized, authorized and not prohibited by law. To be legal, a contract requires legally competent parties, mutual agreement, legitimate purpose, and acceptable consideration. The notion of lawful object also implies an ethical quality, since the object in question is not only legal; It is also ethical and acceptable to society as a whole. The word “immoral” is generally interpreted according to the standards of the time and the interpretation of the courts.
The Honourable Supreme Court has given the word “immoral” a restrictive meaning, interpreting it strictly to mean “sexual forms of immorality.” Therefore, the Paris agreements cannot be considered immoral. The object of the contract must not cause the destruction of property or injure another person. The object of the contract is expressly or implicitly prohibited by law. An agreement to induce judicial or state officials to act in a corrupt manner and interfere in judicial proceedings. Of the four above-mentioned requirements, the legality of the consideration and the object, the two decisive pillars on which the enforceability of the agreement rests. But before you dive in, it`s important to understand what is meant by “consideration” and “object.” The object and consideration of the contract must not be fraudulent, because then the contract becomes null and void. An agreement can involve the fulfillment of several promises, some of which are legal and some of which are illegal. The legal parts of the agreement can be enforced if they can be separated from the illegal parts. However, if the illegal parts affect the entire agreement, the legal parts of the agreement will not be enforced. As far as possible, an agreement will be interpreted as legal.
In other words, if an agreement allows two interpretations, one legal and the other illegal, the Court will generally use the legal interpretation, unless it is clear that the interpretation of illegality is very clearly indicated. A lawful object in commercial law means that it must not be contrary to public policy. The purpose of public order is not to restrict the rights of an individual, but to preserve and protect the general good of the community. Let`s see what types of contracts are considered contrary to public order: Prohibition of prosecution: A contract prohibiting a person from appealing is considered null and void. Most states stipulate that gambling contracts are illegal. Lotteries that include the element of a prize, opportunity, and consideration are also considered illegal. Of course, a state can allow a state-run lottery or legalize gambling in general, as in Nevada. In some states, bingo games, lotteries, and raffles are legal if the proceeds are used for charitable purposes. Gift plans and games are legal as long as it is not necessary to buy something or give anything of value to participate. If the participation is free, the counterpart element is not present and there is therefore no lottery.
If the object or consideration is considered immoral by the court, then that object and consideration are immoral. Suppose A lends money to B to get her husband C divorced. It was agreed that A would marry her as soon as B obtained a divorce. However, the court ruled that A cannot recover money from B because the contract is void for illegal consideration. If the object of the contract and/or the consideration of the contract are considered immoral, the contract does not become null and void. Immoral acts violate reasonable and acceptable general behavior or personal behavior accepted by society. The nature of the object and the consideration are such as to defeat the purpose of the law. An object and/or consideration prohibited by law will not be considered lawful and will result in the nullity of a contract. Unlawful examination of the object refers to punishable unlawful acts. Acts prohibited by the competent authority under its rules and regulations shall also be taken into account for the purpose of establishing legality.