Next due
11 OCTGSTR-1 · Outward supplies · Sep 2026in 3 days 15 OCTPF & ESI · Contributions · Sep 2026in 7 days 20 OCTGSTR-3B · Summary return · Sep 2026in 12 days 21 OCTTax Audit Report · Form 3CA/3CB · AY 2026-27 · extended from 30 Sepin 13 days 30 OCTAOC-4 · Financial statements · FY 2025-26in 22 days 7 NOVTDS / TCS deposit · Deducted in Oct 2026in 30 days 21 NOVITR filing · Audit cases · AY 2026-27 · extended from 31 Octin 44 days 29 NOVMGT-7 / 7A · Annual return · FY 2025-26in 52 days
All due dates

Section 24 of the Indian Contract Act, 1872: Agreement Void if Consideration or Object Is Unlawful in Part

"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...

Published
Updated
Reading time
6 min
Views
15
Questions
6 answered
  • Expert Reviewed
  • Medium Complexity
Topic
Contract Law
Published
October 1, 2026
Last updated
Oct 7, 2026
Reading time
6 min
0:00
Last updated: October 2026Verified against: Government sources

Section 24 deals with an agreement that is partly lawful and partly unlawful. It says that 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.

The two cases the section covers

Section 24 is worded in a compact way. Take it apart.

CaseTextIn plain words
1"any part of a single consideration for one or more objects"One consideration is given for one or more objects; part of that consideration is unlawful
2"any one or any part of any one of several considerations for a single object"Several considerations are given for a single object; any one of them, or part of any one, is unlawful

In both cases the result is the same: "the agreement is void".

If you are putting several promises and payments into one agreement and want to be sure none of them is unlawful, our agreement drafting service can help you check each one.

Case 1: a single consideration, one or more objects

Here there is one consideration, for example one payment, which is given for one or more objects. If a part of that consideration is unlawful, the agreement is void. The text says "any part".

Case 2: several considerations, a single object

Here there are several considerations for one object. If any one of the considerations, or any part of any one of them, is unlawful, the agreement is void.

What "unlawful" means

Section 24 does not define unlawful. It takes the meaning from section 23: a consideration or object is unlawful if forbidden by law, defeating the provisions of any law, fraudulent, involving or implying injury to the person or property of another, or regarded by the Court as immoral or opposed to public policy. See our article on section 23.

The Act's own illustration

A promises to superintend, on behalf of B, a legal manufacture of indigo, and an illegal traffic in other articles. B promises to pay A a salary of 10,000 rupees a year. The agreement is void, the object of A's promise, and the consideration for B's promise, being in part unlawful.

Look at how it fits the section. A's promise has two objects: one lawful (legal manufacture of indigo) and one unlawful (illegal traffic in other articles). B's single salary is the consideration for both. Because the salary is a single consideration for objects that are in part unlawful, the agreement is void. The Act does not split the agreement into a valid half and a void half in this illustration.

How it differs from other void-to-the-extent sections

Section 24 says "the agreement is void", whole. Some other sections speak differently:

SectionWording on extent
24"the agreement is void"
27Agreements in restraint of trade are "to that extent void"
28Agreements restricting legal proceedings are "void to the extent" stated

So where the Act wants only the offending part to be void, it says so, as in sections 27 and 28. Section 24 does not use such words. We cover those sections in our articles on section 27 and on section 28. The text of section 24 does not say whether a court may separate the lawful part from the unlawful part; that question has been worked out in case law, which is outside this article.

A modern example (ours, not the Act's)

Imran hires Joya's consultancy for a fixed monthly retainer. The agreement lists her duties: preparing his company's regular reports (lawful), and also arranging for entries in the company's books to be falsified to hide a loss from a lender (unlawful, as a fraud on the lender). Imran's single retainer is the consideration for all her promises, and the object of Joya's promises is in part unlawful. On the pattern of the Act's indigo illustration, the whole agreement is void under section 24, not just the falsification part.

A safer approach is to keep lawful engagements and unlawful ones apart, which in this case means not accepting the unlawful engagement at all.

What can the parties change?

Section 24 states the effect of partial unlawfulness; the parties cannot agree that the unlawful part will be ignored. A clause saying "if any part of this agreement is unlawful, the rest remains valid" does not appear in section 24, and we do not say whether it works; the text is silent. The reliable course is to draft separate agreements for separate lawful engagements, and to remove any part that falls under section 23.

Practical points

  • Review the whole package. One unlawful strand in a bundle of promises can make the whole agreement void under section 24.
  • Separate engagements. Where you can, keep distinct engagements in distinct documents.
  • Check each payment. A single payment that is partly for an unlawful purpose is within the first case.
  • Take advice on severability. The section does not say whether the lawful part can survive; that depends on law outside the text.

Need help with an agreement that mixes several engagements?

If your agreement combines several services, payments or objects and you want to be sure that none of them runs into section 23, our agreement drafting team can review the draft and help you keep the lawful engagements clean and separate.

Key takeaways

  • If any part of a single consideration for one or more objects is unlawful, the agreement is void (s.24).
  • If any one, or any part of any one, of several considerations for a single object is unlawful, the agreement is void.
  • Unlawful has the meaning given in section 23.
  • The Act's indigo illustration shows the whole agreement void, not only the unlawful part.

Read next

Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.

Quick recapKey facts & short answers

Key Facts About Section 24

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What if only a small part of the agreement is unlawful?

Section 24 says if any part of the consideration or object is unlawful the agreement is void. The Act's illustration treats the agreement as void.

Where is "unlawful" defined?

In section 23.

A well-drafted notice often ends the dispute that a poor one would begin.

— TaxClue Legal Desk

Section 24: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Was this article helpful?
About the author
13,350 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

Last reviewed: Live

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Section 24 says if any part of the consideration or object is unlawful the agreement is void. The Act's illustration treats the agreement as void.

In section 23.

No. The text is silent on that; it says "the agreement is void".

Section 27 says agreements in restraint of trade are void "to that extent". Section 24 has no such words.

Yes. It speaks of considerations and objects.

Yes: the superintendence of a legal indigo manufacture and an illegal traffic, for a salary of 10,000 rupees a year.