If the purpose or consideration of an agreement is the execution of an act prohibited by law, the agreement is annulled. Acts or undertakings prohibited by law are punishable by law, as are those prohibited (explicitly or implicitly) by specific legislation of Parliament and state legislators. Example 2: A agrees to leave his daughter as concubine to B. The agreement is subject to nullity because it is immoral, although the rental cannot be punishable under the Indian Penal Code (45 of 1860). Circumstances that would make a consideration illegal and the subject of an agreement are conditionally quashed if the purpose or examination of an agreement is unethical, it is nullified. The following examples would help to better understand the point. The ordinary task of the courts is to rely on well-established public policy chiefs and apply them to different situations. For example, A, the CEO of a company, agrees to award a contract to B if the latter pays rs 5,000 to the former. The agreement tends to create an interest against bonds and is non-hazard because of the trade in public functions. An illegal agreement under the common law of the treaty, is an agreement that the court will not enforce, because the purpose of the agreement is to obtain an illegal purpose.
The illegal purpose must result from the performance of the contract. The classic example of such an agreement is a murder contract. However, a contract that requires only legal benefit. B of each game, such as the sale of decks of cards to a known player in which gambling is illegal, is applicable. However, a contract directly related to the gambling law itself, such as the repayment of gambling debts (see the case close), does not meet legal standards of applicability. Therefore, an employment contract between a blackjack dealer and a talkeasy manager is an example of an illegal agreement, and the worker is not validly entitled to his wages if gambling is illegitimate under that jurisdiction.