Section 75 of the Indian Contract Act – What It Means for Your Agreements

Ever wondered why a contract you signed suddenly feels shaky? In India, Section 75 is the rule that says a deal is void if its consideration or purpose is illegal. In plain words, if the reason you’re exchanging money or promises breaks the law, the contract doesn’t count.

Why does this matter? Because a void contract can’t be enforced in court. That means you can’t force the other side to pay, and you can’t claim any rights from the deal. It’s a safety net that stops people from using the legal system to back illegal activities.

When Does Section 75 Apply?

Two main situations trigger Section 75:

• Unlawful consideration: The thing you’re receiving or giving is illegal. Think paying for a bribe, buying prohibited drugs, or renting a property for an illegal gambling operation.
• Unlawful object: The purpose of the contract itself is against the law. For example, agreeing to murder someone or to defraud a bank.

Both the consideration (what each side gives) and the object (why they’re doing it) must be legal for a contract to stay valid.

Real‑World Examples

Imagine you hire a builder to construct a house, but the plan includes an illegal addition, like a hidden room for gambling. Even if you pay the builder, the contract can be void because the overall purpose violates law.

Another case: You agree to sell a vintage car, but the car was stolen. The car itself is illegal property, so the sale contract falls under Section 75 and can’t be enforced.

These examples show why checking the legality of both what you’re getting and why you’re doing it is crucial before signing anything.

What if you’ve already signed a contract that turns out to be illegal? The law treats it as if it never existed. You can’t claim damages for breach, but you might be able to recover any money you’ve already paid, depending on the circumstances.

To protect yourself, always ask:

1. Is the thing I’m receiving legal?
2. Is the reason for this agreement allowed by law?
3. Do I have any documents that prove the legality of the deal?

If you’re unsure, a quick chat with a lawyer can save you headaches later. They can spot red flags in the contract language and advise you on how to restructure the deal to stay within legal bounds.

Section 75 also interacts with other parts of the Indian Contract Act. For instance, if a contract is void under Section 75, it can’t be ratified later to become valid. The void status sticks, no matter how much both parties want to salvage the agreement.

In practice, courts look at the contract’s core purpose. If the main goal is illegal, even a tiny lawful component won’t save the agreement. The focus is on the dominant intent behind the deal.

Bottom line: Always keep the law on your side when drafting or signing contracts. A contract with illegal consideration or an unlawful object is a dead end, and Section 75 makes sure it stays that way.

Need help checking a contract for Section 75 issues? Our directory of experienced advocates can connect you with a specialist who knows Indian contract law inside out. Don’t let an illegal clause ruin your plans – get the right advice today.