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Sections 57–58 of the Indian Contract Act, 1872: Reciprocal Promises Partly Illegal and Alternative Promises

Where persons reciprocally promise to do certain things which are legal, and under specified circumstances certain other things which are illegal, the first set of promises is a...

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Contract Law
Published
October 1, 2026
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Oct 7, 2026
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Last updated: October 2026Verified against: Government sources

Sections 57 and 58 are two short rules about contracts that mix lawful and unlawful promises. Section 57 separates lawful reciprocal promises from illegal ones that depend on a stated circumstance: the lawful set is a contract, the illegal set is a void agreement. Section 58 does the same for an alternative promise: only the legal branch can be enforced. If you are unsure whether a clause in your agreement could be tainted, our legal consultation service can look at it with you.

Section 57: legal reciprocal promises with an illegal set

"Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promises is a contract, but the second is a void agreement."

The structure is a deal in two parts:

  1. First set: lawful reciprocal promises. This is "a contract".
  2. Second set: promises to do illegal things "under specified circumstances". This is "a void agreement".

The word "void" matters: a void agreement is not enforceable, and the section does not say that the first set is dragged down with it. The text keeps the two sets apart.

The Act's illustration. A and B agree that A shall sell B a house for Rs. 10,000, but that if B uses it as a gambling house, he shall pay A Rs. 50,000 for it. The first set (to sell the house and to pay Rs. 10,000 for it) is a contract. The second set is for an unlawful object, namely that B may use the house as a gambling house, and is a void agreement.

A modern example (ours). Anita agrees to lease a warehouse to Brijesh Traders for Rs. 80,000 a month. The lease also says that if Brijesh stores a banned substance in it, he must pay Anita an extra Rs. 5 lakh and she will keep quiet about it. The ordinary lease promises (give the warehouse, pay the rent) form a contract. The promise relating to the illegal use is a void agreement under s.57, on the pattern of the Act's illustration.

Section 58: alternative promise, one branch illegal

"In the case of an alternative promise, one branch of which is legal and the other illegal, the legal branch alone can be enforced."

An alternative promise says: "I will do X or Y." If X is lawful and Y is not, only X can be enforced.

The Act's illustration. A and B agree that A shall pay B Rs. 1,000, for which B shall afterwards deliver to A either rice or smuggled opium. This is a valid contract to deliver rice, and a void agreement as to the opium.

A modern example (ours). Chetan agrees to pay Dalip Rs. 2 lakh, and Dalip promises to deliver either 500 bags of wheat or 500 bags of grain that he has no licence to trade in. The branch to deliver wheat can be enforced; the unlicensed branch cannot. (The example assumes the licence rule makes that branch unlawful; whether any given activity is unlawful depends on the law that applies to it.)

The two sections side by side

PointSection 57Section 58
Kind of promiseReciprocal promises in two setsOne alternative promise with two branches
Legal partFirst set is a contractThe legal branch alone can be enforced
Illegal partSecond set is a void agreementThe illegal branch cannot be enforced
Act's illustrationHouse sale with gambling-house paymentRice or smuggled opium

How they relate to other sections

  • Whether an object is lawful is the subject of section 23; see our overview of void and voidable contracts (ss.24 to 30). Sections 57 and 58 begin where the parties have already put lawful and unlawful promises into the same agreement.
  • Section 24 also deals with unlawful parts of an agreement; it has its own wording and is covered in its own article.
  • If an agreement is discovered to be void, section 65 deals with returning any advantage received; see sections 63 to 65.

What can the parties change?

Neither section carries a "contrary intention" proviso. The parties cannot make an illegal promise lawful by agreement, but they can avoid trouble through drafting: keep the lawful promises in a separate clause, avoid alternatives where one branch is doubtful, and delete any promise that depends on illegal use or conduct. Whether a particular clause is "illegal" turns on other laws that this article does not cover.

Practical points

  • Audit your clauses. Look for conditions of the form "if X happens, then pay or do something unlawful".
  • Avoid "either/or" promises where one limb is doubtful. If it turns out to be unlawful, only the other limb can be enforced.
  • Keep lawful promises separate from any doubtful promise, so that it is clear that the first set stands as a contract.
  • Take advice on unlawful objects. What counts as illegal depends on the particular law.
  • For the order in which lawful promises are to be performed, see sections 51 to 53.

Need help reviewing a mixed clause?

If one part of your agreement may be tainted by an unlawful object, it is sensible to find out before you rely on it. Our legal consultation team can review the clause, tell you which promises can stand on their own and suggest a cleaner structure. Bring the agreement and a short note on how the parties intend to use it.

Key takeaways

  • A set of lawful reciprocal promises is a contract; a set of illegal promises under specified circumstances is a void agreement (s.57).
  • In an alternative promise with one legal and one illegal branch, only the legal branch can be enforced (s.58).
  • The Act's illustrations: a house sale with a gambling-house term, and rice or smuggled opium.
  • The sections do not say what is unlawful; that comes from other provisions and laws.

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 Sections 57

  • 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.

Does an illegal second set cancel the whole agreement?

Under s.57, the first set is a contract and the second set is a void agreement. The text keeps them apart.

What is an "alternative promise"?

A promise to do one of two things. Section 58 deals with the case where one branch is legal and the other is illegal.

Settle the facts first; the right section and the right form follow from them.

— TaxClue Compliance Desk

Sections 57: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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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.

Under s.57, the first set is a contract and the second set is a void agreement. The text keeps them apart.

A promise to do one of two things. Section 58 deals with the case where one branch is legal and the other is illegal.

No. The section says the legal branch alone can be enforced.

The sections do not define illegality. Section 23 and other laws apply.

In the Act's illustration to s.58, there is a valid contract to deliver rice and a void agreement as to the opium.

Only as the Act's illustration. The section applies to any reciprocal promises of the kind described.