What is the effect of an unlawful object or unlawful consideration on the validity of an agreement under the Indian Contract Act, 1872. (6 Marks)

Provisions of Law: Under Section 23 of the Indian Contract Act, 1872 in each of the following cases the consideration or object of an agreement is said to be unlawful: (i) When consideration or object is forbidden by law: Acts forbidden by law are those which are punishable under any statute as well as those prohibited by regulations or orders made in exercise of the authority conferred by the legislature. (ii) When consideration or object are of such a nature that if permitted it would defeat the provisions of law: If the consideration or the object of an agreement is of such a nature that not directly but indirectly, it would defeat the provisions of the law, the agreement is void. (iii) When it is fraudulent: Agreements which are entered into to promote fraud are void. (iv) The general term “injury” means criminal or wrongful harm. In some cases, the object or consideration is unlawful as it involves injury to the person or property of another. (v) When consideration is immoral: In some cases, the object or consideration is unlawful, being immoral. (vi) When consideration is opposed to public policy: The expression 'public policy' can be interpreted either in a wide or in a narrow sense. The freedom to contract may become illusory, unless the scope of 'public policy' is restricted. In the name of public policy, freedom of contract is restricted by law only for the good for the community.