Trade restriction agreements can be implemented if they are appropriate. If an ex-employee is subject to deference, the court will consider geographic boundaries, what the worker knows and the extent of the length of time. Deference to a business seller must be appropriate and binding where there is a true quality-will label. Under common law, price-fixing contracts are legal. Single delivery agreements (“Solus”) are legal if reasonable. Contracts contrary to public policy are non-issue. Under the Contracts Act, one of the main reasons for the validity of a contract is objectivity and consideration. The contract is based on the “object” that provides the main purpose of the formation of the contract between the parties. It is therefore very important that a contract be valid and applicable so that it is legal and not rejected in any way by law. Even if the recital, which is an important part of a treaty, is again very important that the consideration agreed between the parties is legal and not illegal. Any agreement whose purpose and consideration are contrary to a law and which contravenes the provisions of a law is then considered illegal or null and void. The overall objective of the assessment is to prevent those who act unlawfully from profiting from their own faults and from the civil law remaining in accordance with criminal law.
Thus, this legality of a contract is governed by section 23 of the Indian Contract Act, 1872, which clearly defines the conditions on which the purpose and consideration of an agreement is considered lawful. These conditions include: 1. Should not be prohibited by law The concept of public order in the broadest sense implies the restriction of the freedom of persons to do something in the best interests or for the good of the Community. Under india`s Contracts Act, it limits contractual freedom in certain areas that undermine public order. An agreement is a non-endorsement if the law considers it in opposition to public order. 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. I think the law has long provided that where an act is manifestly illegal or the offender knows it is illegal, since it is either a civil offence, he cannot bring an action by contributing, nor can he compensate the liability that ensues. To understand the concept of “legal” and “illegal” contracts, let`s take a few examples, A entered into a contract with B for the sale of a house of Rs 11.00,000, and A and B both fulfilled their obligations. It is a valid contract between A and B. Let`s take another example: A and B have entered into the contract to sell a house, but it is used to store weapons prohibited by law.
This is an illegal contract that is not applicable by the court.