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CMA Foundation · Fundamentals of Business Laws and Business Communication · Consideration and Legality of Object

Kiran promises to drop a prosecution for robbery that he has instituted against Bhavesh, and Bhavesh promises to pay Kiran the value of the things taken. What is the effect of this agreement?

The agreement is void. Under Section 23, agreeing to drop a prosecution for robbery in return for payment of the value of the things taken has an unlawful object, and every agreement with an unlawful object is void, not merely voidable.

  1. AValid, since Bhavesh is only restoring what he took
  2. BVoid, because its object is unlawfulCorrect
  3. CVoidable at Kiran's option
  4. DValid only if the court permits withdrawal later

Explanation

The illustration to Section 23 treats an agreement to drop a prosecution for robbery in return for restoring the stolen goods' value as having an unlawful object. Every agreement with an unlawful object is void. It is not merely voidable at anyone's option.

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