Week 6 - Section 24 - 30 C

24. If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object is unlawful, the agreement is void.  
A promises to superintend, on behalf of B, a legal manufacture of indigo, and an illegal traffic in other articles. B promises to pay to A a salary of 10,000 Taka a year. The agreement is void, the object of A's promise and the considerations B's promise being in part unlawful.  
Agreement without consideration void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law  
25. An agreement made without consideration is void, unless–   
(1) it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless   
(2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do, or unless   
(3) it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits.   
In any of these cases, such an agreement is a contract.   
Explanation 1 – Nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made.   
Explanation 2 – An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given.  
Illustrations  
(a) A promises, for no consideration, to give to B Taka 1,000. This is a void agreement.   
(b) A, for natural love and affection, promises to give his son, B, Taka 1,000. A puts his promise to B into writing and registers it. This is a contract.   
(c) A finds B's purse and gives it to him. B promises to give A Taka 50. This is a contract.   
(d) A supports B's infant son. B promises to pay A's expenses in so doing. This is a contract.  
 (e) A owes B Taka 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Taka 500 on account of the debt. This is a contract.   
(f) A agrees to sell a horse worth Taka 1,000 for Taka 10. A's consent to the agreement was freely given. The agreement is a contract notwithstanding the inadequacy of the consideration.   
(g) A agrees to sell a horse worth Taka 1,000 for Taka 10. A denies that his consent to the agreement was freely given.   
The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A's consent was freely given.  
Agreement in restraint of marriage void  
26. Every agreement in restrain of the marriage of any person, other than a minor, is void.  
Agreement in restraint of trade void Saving of agreement not to carry on business of which good- will is sold  
27. Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.  
Exception 1.–One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein: Provided that such limits appear to the Court reasonable, regard being had to the nature of the business.  
Exception 2 and 3. [Repealed by section 73 and 2nd Schedule of the Partnership Act, 1932 (Act No. IX of 1932).]  
Agreements in restraint of legal proceedings void Saving of contract to refer to arbitration dispute that may arise Suits barred by such contracts Saving of contract to refer questions that have already arisen  
28. Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to that extent.  
Exception 1.–This section shall not render illegal a contract by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration, and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred.    
Exception 2.-Nor shall this section render illegal any contract in writing, by which two or more persons agree to refer to arbitration any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration.  
Agreements void for uncertainty  
29. Agreements, the meaning of which is not certain, or capable of being made certain, are void.  
Illustrations  
(a) A agrees to sell to B "a hundred tons of oil". There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.  
(b) A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.  
(c) A, who is a dealer in coconut-oil only, agrees to sell to B "one hundred tons of oil". The nature of A's trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of Coconut-oil.  
(d) A agrees to sell B "all the grain in my granary at 5[ Rangpur]". There is no uncertainty here to make the agreement void.  
(e) A agrees to sell to B "one thousand mounds of rice at a price to be fixed by C". As the price is capable of being made certain, there is no uncertainty here to make the agreement void.  
(f) A agrees to sell to B "my white horse for Taka five hundred or Taka one thousand". There is nothing to show which of the two prices was to be given. The agreement is void.  
Agreements by way of wager void Exceptions in favour of certain prizes for horse-racing Section 294A of the Penal Code not affected  
30. Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be own on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which wager is made.  
This section shall not be deemed to render unlawful a subscription, or contribution, or agreement to subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount of five hundred Taka or upwards, to be awarded to the winner or winners of any horse race.  
Nothing in this section shall be deemed to legalize any transaction connected with horse-racing, to which the provisions of section 294A of the Penal Code apply.  
Agreements collateral to wagering agreements void  
30A. All agreements knowingly made to further or assist the entering into, effecting or carrying out, or to secure or guarantee the performance, of any agreement void under section 30, are void.  
No suit for recovery of money, commission etc, in respect of void agreements  
30B. No suit or other proceeding shall lie for the recovery of–  
a) any sum of money paid or payable in respect of any agreement void under section 30A, or  
(b) any commission, brokerage, fee, or reward in respect of knowingly effecting or carrying out, or aiding in effecting or carrying out, of any such agreement or of any sum of money otherwise claimed or claimable in respect thereof, or  
(c) any sum of money knowingly paid or payable on account of any person by way of commission, brokerage, fee, reward or other claim in respect of any such agreement.  
Payment by guardian, executor, etc, in respect of void agreements not to be allowed credit  
30C. No guardian, executor, administrator, heir or personal representative of any minor or deceased person, as the case may be, shall be entitled to or allowed any credit in his account for or in respect of any payment made by him on behalf of such minor or deceased person in respect of any such agreement, or any such commission, brokerage, fee, reward or claim as is referred to in sections 30A and 30B.]