What Is Lawful Object in Indian Contract Act

The Indian Contract Act of 1872 is a crucial piece of legislation that defines the terms and conditions of a legally binding agreement between two or more parties. One of the most important provisions of this Act is the concept of a lawful object. In this article, we will explore what a lawful object means under the Indian Contract Act and why it is essential to understand for businesses and individuals.

In simple terms, a lawful object refers to the purpose or goal of a contract that is not prohibited by law. To be considered lawful, the object of a contract must not be illegal, immoral, or against the public policy of India. The Indian Contract Act has set out certain guidelines to determine whether an object is lawful or not.

According to the Act, an object is deemed lawful if it is possible to perform, not fraudulent or involves harm to anyone, is not forbidden by law, and is not against public policy. Additionally, the object must not be harmful to the rights of the parties involved, or against the fundamental principles of Indian law.

An example of an unlawful object would be a contract between two parties to sell illegal drugs. This contract is illegal as the sale of drugs is prohibited by law. Another example is a contract that involves the commission of a crime or is against public morals. For instance, a contract to hire someone to commit a robbery would be considered unlawful.

It is crucial to understand what constitutes a lawful object when entering into a contract as any contract with an unlawful object is void and unenforceable by the courts. For instance, if a person enters into a contract to buy a stolen car, and it is later discovered that the car was stolen, the contract will be deemed void, and no legal remedy will be available to the person who purchased the car.

In conclusion, the concept of a lawful object is a crucial aspect of the Indian Contract Act. It ensures that all contracts entered into by parties are based on lawful purposes and not against public policy. Understanding the concept of lawful object is essential for individuals and businesses entering into contracts to ensure that they are binding and enforceable under the law.