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    Question

    Under the Indian Contract Act, which of the following statements correctly describes when the consideration or object of an agreement is considered unlawful?

    A The consideration or object is lawful if it is merely unusual or unconventional Correct Answer Incorrect Answer
    B The consideration or object is lawful as long as it is agreed upon by both parties, regardless of its nature Correct Answer Incorrect Answer
    C The consideration or object is lawful if it does not explicitly violate any written law, even if it is controversial Correct Answer Incorrect Answer
    D The consideration or object is unlawful if it is forbidden by law, fraudulent, immoral, or opposed to public policy, or if it involves injury to another person or property Correct Answer Incorrect Answer
    E The consideration or object is unlawful only if it directly results in a financial loss to one of the parties Correct Answer Incorrect Answer

    Solution

    Section 23. What considerations and objects are lawful, and what not- The consideration or object of an agreement is lawful, unless— it is forbidden by law; or is of such a nature that, if permitted, 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. In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

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