Section 23 of the Indian Contract Act is an essential provision that governs the legality of agreements and contracts in India. This section defines what makes an agreement or contract valid and enforceable in the country.

According to Section 23, an agreement or contract is considered valid and enforceable only if it is made for a lawful consideration and with a lawful object. Any agreement or contract made for an unlawful consideration or with an unlawful object is considered void under the Indian Contract Act.

What is a lawful consideration?

A lawful consideration is defined as something that the parties to a contract exchange as a benefit or advantage. It can be money, goods, services, or anything else that has value in the eyes of the law. The consideration must be lawful, meaning it must not be something that is prohibited by law or against public policy.

What is a lawful object?

A lawful object refers to the purpose or goal of the agreement or contract. To be considered lawful, the object must not be illegal, immoral, or against public policy. For example, an agreement to sell illicit drugs or to engage in prostitution would have an unlawful object and would be considered void under Section 23.

In addition to the above, Section 23 also specifies that an agreement or contract that is opposed to public policy or is immoral or illegal will also be void. Such agreements may include those that involve fraud or coercion, or those that are harmful to public interest.

In conclusion, Section 23 of the Indian Contract Act is an essential provision that outlines the legal requirements for a valid and enforceable agreement or contract in India. It highlights the importance of ensuring that the consideration and object of the agreement or contract are both lawful and not contrary to public policy. By following these guidelines, individuals and businesses can ensure that their agreements and contracts are legally binding and enforceable in India.