Meaning and importance of legality of Object and Consideration (Lawful Object)

Legality of object is an important essential element for valid contract. It means if the object and consideration of an agreement is not legal, the agreement never be converted in to valid contract. The legal object provides validity of legal status to an agreement. Legality denotes legal conformity or validity so as to legality of object refers that the object of a particular agreement is in accordance with law or legal.

The object means propose or something return, for which the concern agreement is formulated. To be regarded as valid contract, the subject, object, process, design, motive and all aspects of contract must be valid and lawful. Otherwise it can not bear the status of valid contract. The Contract or an agreement is void if its object and consideration is not legal.

There are several provisions have been incorporated under the Indian Contract Act, 1872 and Nepal Contract Act, 2056 which make such contract of agreement void. No contract is valid without its legal object and lawful consideration. Therefore the legality of object and consideration is one of the major perquisites to form a valid contact.

Nepal Contract Act, 2056; Section 13 has declared the contract to be void if it has an illegal objective. Section 13(f) declares the contract which has the objective against the morality or public welfare or public policy to be void. Section 13(k) states the contract which has an illegal object and consideration will be void.

Indian Contract Act, 1872 names creation considerations and objectives as illegal and they are declared void, except that other consideration and object are legal. The contracts which have either illegal or unlawful objectives are void. Unlawful means not permitted by law and illegal means prohibited by law.

Importance of Lawful Object

The agreement which is made for a lawful consideration and lawful objective is enforceable by law. If the objective and consideration of contract is unlawful it is impossible t enforce in real practice that's why lawful objective and consideration is too much important for the valid contract. Some major importances are as below:

  • To protect business from unfair competition and unfair business practice.
  • To discourage socially undesirable conduct and in appropriate judicial practice.
  • To enforce contract and maintain law and order in business fields.
  • Not to give an opportunity to carryout illegal act through the legal agreement.