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

Which fact situation is covered by the second limb of Section 24, namely 'any one or any part of any one of several considerations for a single object' being unlawful?

The situation with two payments for a single job, one of which is for an immoral purpose, is covered. The second limb of Section 24 applies when one of several considerations for a single object is unlawful. Then the agreement is void, just as in the first limb.

  1. AA pays one lump sum to B for a lawful sale and an unlawful agency
  2. BA promises two payments to B for a single lawful job, where one of the payments is for an immoral purposeCorrect
  3. CA agrees to sell a house to B and the price is unclear
  4. DA promises to pay B, if C fails to pay B

Explanation

The second limb involves several considerations for one object, where at least one consideration is unlawful. Two payments to B for a single job, one of them for an immoral purpose, fit that pattern. The first option reflects the first limb (single consideration, several objects). The uncertainty and conditional-promise cases fall under other sections.

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