X agrees to pay Y - 1,00,000, if Y kills Z. To pay Y, X borrows - 1,00,000 from W, who is also aware of the purpose of the loan. Y kills Z but X…

(a) Illegal Agreement: It is an agreement which the law forbids to be made. As an essential condition, lawful consideration and object is a must to make the agreement valid. (Section 10 of the Indian Contract Act,1872). As per Section 23, an agreement is illegal and void, if the consideration and object is unlawful/contrary to law i.e. if forbidden by law. Such an agreement is void and is not enforceable by law. Even the connected agreements or collateral transactions to illegal agreements are also void. In the present case, (A) X agrees to give - 1,00,000 to Y if Y kills Z. Thus, the agreement between X and Y is void agreement being illegal in nature. (B) X borrows - 1,00,000 from W and W is also aware of the purpose of the loan. Thus, the agreement between X and W is void as the connected agreements of an illegal agreements are also void.