d) A promises to receive B`s child, and B promises to pay 1,000 rupees a year for this purpose. Here is the promise of each party reflecting on the promise of the other party. These are legitimate considerations. 17. The relevant figures in Section 23: e) A, B and C enter into an agreement on the fraud distribution of profits they have acquired or will be acquired. The agreement is null and forth, because its purpose is illegal. (g) As an agent of a landowner, A undertakes to receive money, without knowledge of his sponsor, to obtain for B a rent of real estate from his client. The agreement between A and B is inconclusive, as it involves fraud by concealment of its client by concealment. Although the purpose or idea of an agreement, sometimes not directly prohibited by law, they are always prohibited when it comes to the nature of destroying the purpose of the provision of the law. The authorization of such an object or such consideration is void.
If a decree-law provides for a sanction for an act or promise, the execution of such an act or promise would amount to the defeat of that law, because it is implied that the statute intends to prohibit that act. The declaration authorizing the refund of VAT is against the law. The tax paid is not an amount that the applicant spent, but which she realizes for sale. The constitutional requirements of the imposition of taxes for the good of society and not for a given person the agreement or promise of the government was a violation of the public objective, so that public order became contrary and did not occur in accordance with Section 23 of the Contracts Act; Amrit Bansapati Co Ltd. State of Punjab, AIR 1992 SC 1076. While the term “counterparty” is contrary to the concept of “consideration,” the term “object” was not defined in section 2 of the act, but was called the “object” or “project” of the contract. If the object is contrary to public order or tends to defeat a provision of the law, it becomes illegal and therefore annulled under section 23 of the law; Nutan Kumar v. IInd District of Additional Judge, Banda, AIR 1994 All 298. Where an agreement is merely a guarantee for another agreement or constitutes aid that facilitates the implementation of the purpose of the other agreement, which, although cancelled, is not prohibited by law, it can be applied as a guarantee contract. When a person entering into an illegal contract explicitly or implicitly promises that the contract is innocent, such a commitment constitutes a security contract on which the other party, if effectively innocent of Turpitude, can sue for damages; Rajat Kumar Rath against. Government of India, AIR 2000 Ori 32.
The Supreme Court of India has dealt with certain Section 23 cases that find certain contract negotiations to be cancelled. In “ONGC Ltd. v. Saw Pipes Ltd.” 21 With respect to the interpretation of the importance of “public order” in this case, the Hon`ble Court indicated that several authorities had repeatedly indicated that the term “public order” did not allow for precise definition and could vary from generation to generation and from time to time. Therefore, the term “public order” is considered vague, sensitive to a narrow sense or broader depending on the context in which it is used.