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Section 18: Lawful Consideration or Objects in Contracts

18.Lawful consideration or objects

(1)A consideration or an object of an agreement is lawful, except where the consideration or object—

(a)is forbidden by law;

(b)is of such nature that, if permitted would defeat the provisions of any law;

(c)is fraudulent;

(d)involves or implies, injury to a person or the property of another person; or

(e)is declared immoral or against public policy by a court.

(2)An agreement whose object or consideration is unlawful is void and a suit shall not be brought for the recovery of any money paid or thing delivered or for compensation for anything done under the agreement, unless—

(a)the court is satisfied that the plaintiff was ignorant of the illegality of the consideration or object of the agreement at the time the plaintiff paid the money or delivered the thing sought to be recovered or did the thing in respect of which compensation is sought;

(b)the court is satisfied that the illegal consideration or object had not been effected at the time the plaintiff became aware of the illegality and repudiated the agreement;

(c)the court is satisfied that the consent of the plaintiff to the agreement was induced by fraud, misrepresentation, coercion or undue influence; or

(d)the agreement is declared illegal by any written law, with the object of protecting a particular class of persons of which the plaintiff is one.

(3)Where a part of a single consideration for one or more objects, or one of several considerations for a single object is unlawful, the agreement is void.

Plain English Summary

You need to ensure that the reason (consideration) or purpose of any contract you enter into is lawful. It is unlawful if it is forbidden by law, frau...

AI-generated, for reference only.

🔍Search Tips
  • • Search by keyword: "land", "tax", "arrest"
  • • Use exact phrases: "land commission"
  • • Enter citations: 45, 45(3)(a), 45:3:a
  • • Press / to search, Esc to close

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