Section 23 of the Indian Contract Act 1872

Von 22. August 2023Allgemein

Section 23 of the Indian Contract Act, 1872 is one of the most important sections that governs the legality of a contract. This section specifies the conditions under which a contract may be deemed as void. A contract is said to be void if it is made for an unlawful consideration or for a purpose which is against public policy. Let`s take a closer look at the different aspects of this section.

Unlawful Consideration:

Section 23 states that any consideration or object of a contract that is unlawful, immoral, or opposed to public policy will make the contract void. This means that if the object or consideration of a contract is illegal, the contract is not enforceable under law.

For example, if A promises to give B a certain amount of money for stealing a car, the contract is illegal and cannot be enforced. In this case, the consideration for the contract is unlawful as it involves a criminal act.

Against Public Policy:

Contracts that are made for purposes that are against public policy are also considered void. Public policy refers to the set of laws, regulations, and moral principles that are established for the benefit of society as a whole. If a contract violates these principles, it is against public policy and cannot be enforced.

For example, contracts that involve bribery, corruption, or exploitation are against public policy and are therefore void. Such contracts are not only ethically wrong but are also illegal under law.

Furthermore, any agreement that restricts the freedom of a citizen, goes against principles of fair competition, or goes against provisions of any law, would be void under this section.


In summary, Section 23 of the Indian Contract Act, 1872 lays down a clear explanation of what makes a contract void. It sets the standard for lawful contracts and ensures that agreements made between parties are ethical, legal, and in line with public policy. As a professional, it’s crucial to ensure that any content related to Section 23 of the Indian Contract Act, 1872 is clear, accurate, and easily understandable to readers.