24. What considerations and objects are lawful, and what not

The consideration or object of an agreement is lawful unless —

it is forbidden by law;

it is of such a nature that, if permitted, it would defeat the provisions of any law;

it is fraudulent;

it involves or implies injury to the person or property of another; or

the court regards it as immoral or opposed to public policy.

A agrees to sell his house to B for $10,000. Here, B’s promise to pay the sum of $10,000 is the consideration for A’s promise to sell the house, and A’s promise to sell the house is the consideration for B’s promise to pay the $10,000. These are lawful considerations.

A promises to pay B $1,000 at the end of 6 months if C who owes that sum to B, fails to pay it. B promises to grant time to C accordingly. Here the promise of each party is the consideration for the promise of the other party and they are lawful considerations.

A promises, for a certain sum paid to him by B to make good to B the value of his ship if it is wrecked on a certain voyage. Here A’s promise is the consideration for B’s payment, and B’s payment is the consideration for A’s promise and these are lawful considerations.

A promises to maintain B’s child and B promises to pay A $1,000 yearly for the purpose. Here the promise of each party is the consideration for the promise of the other party. They are lawful considerations.

A, B and C enter into an agreement for the division among them of gains acquired, or to be acquired, by them by fraud. The agreement is void as its object is unlawful.

A promises to obtain for B an employment in the public service and B promises to pay $1,000 to A. The agreements is void as the consideration for it is unlawful.

A, being agent for a landed proprietor, agrees for money, without the knowledge of his principal, to obtain for B a lease of land belonging to his principal. The agreement between A and B is void, as it implies a fraud by concealment, by A, on his principal.

A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is void as its object is unlawful.

A’s estate is sold for arrears of revenue under the provisions of an Act by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser and agrees to convey the estate to A upon receiving from him the price which B has paid. The agreement is void as it renders the transaction, in effect, a purchase by the defaulter and would so defeat the object of the law.

A, who is B’s solicitor, promises to exercise his influence as such with B in favour of C and C promises to pay $1,000 to A. The agreement is void because it is immoral.

A agrees to let her daughter to hire to B for concubinage. The agreement is void because it is immoral, though the letting may not be punishable under the Penal Code