In addition to section 23, section 24 also mentions illegal contracts under the Indian Contracts Act. Under this provision, contracts that contain consideration or property, some of which are illegal, are also considered illegal. In addition, one or part of one of the considerations of a single object of the contract is unlawful; such an agreement is considered invalid in the eyes of the law. Thus, knowledge of the other party`s profession of prostitution and the purpose for which the products it provides are two important factors in illegally maintaining a contract with a prostitute for immorality. At the same time, a contract for renting accommodation to a prostitute for the purpose of her stay and not for the exercise of her profession was considered a legitimate contract, which allowed the owner of the dwellings to recover the rent of the dwellings rented to her. That is what happened in Appleton v. Campbell. An agreement whose purpose is to deceive others is inconclusive. Where the parties agree to engage in fraud against a third party, and not a contracting party, their agreement is unlawful and not arising. The first two examples in Box 6.1 fall into this category. However, a contract that only requires legal performance on the part of each party, such as for example. B the sale of decks of cards to a known player where the game is illegal, is nevertheless enforceable. However, a contract directly related to the law on gambling, such as for example.
B the repayment of gambling debts (see direct cause), does not comply with the legal standards of opposability. Therefore, an employment contract between a blackjack dealer and a speakeasy manager is an example of an illegal agreement and the employee is not validly entitled to his expected salary if gambling is illegal under this jurisdiction. The difference between an inconclusive agreement and an unenforceable contract can be considerable. I believe that there has long been a firm right that, where an act is manifestly unlawful or the offender knows that it is illegal, either because it constitutes civil injustice or a crime, he cannot maintain an action for contributions or compensation for the liability arising therefrom. An illegal contract can affect any type of agreement or transaction. In Canada, a cited case of lack of third-party effectiveness due to illegality is the Royal Bank of Canada v. Newell, 147 D.L.R (4th) 268 (N.S.C.A.), in which a woman falsified her husband`s signature on 40 checks compared to a total of $58,000. .