Q.
What Considerations and Objects are lawful, and what are not? Give examples of each in your own words.
A.
The below are the 5 circumstances for consideration or object to be unlawful, as stated in s.24 Contracts Act, 1950.
(1) it is forbidden by law, example - a contract on trading of fire arm or dangerous drugs.
(2) it is of such a nature that, if permitted, it would defeat any law, example - a contract to buy a house under 'bumi lot' while not fulfilling the requirement of a 'bumi' status.
(3) it is fraudulent, example - a contract to form a shell (fake) company to engage in business venture to deceive public.
(4) it involves or implies injury to the person or property of another, example - contract to threaten someone to pay up debts like breaking his arm, or damage property to signify revenge.
(5) the court regards it as immoral, or opposed to public policy, example - a contract to engage in immoral act like prostitution or intimacy of sexual intent or morally degrading act in public.
Ref:
S.24 Contracts Act, 1950.
Examples - own account.