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Unlawful agreements

Unread postPosted: Thu Jan 24, 2013 2:39 pm
by Admin
Unlawful agreements
An agreement, whose consideration or object is unlawful, is void. The consideration or object of an agreement is unlawful, if it is forbidden by law or 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.

A party to an illegal agreement who has advanced money under it to the other party is entitled to recover it, if the illegal purpose has not been partly or wholly carried out.
Agreements in restraint of marriage, trade and legal proceedings are void. The seller of the goodwill of a business may, however, validly agree with the buyer to restrain from carrying on a similar business within specified local limits, provided the limits are reasonable.