Tuesday, October 09, 2007

Contract Act_Practical Problems_28

A contracted to indemnify B & Co., a publishing firm, against the consequences of any libel which might appear in any of their publications. B & Co. were forced to pay damages for a statement published by them which they knew to be libellous. The firm sues A on the basis of the agreement. Is this agreement enforceable?

No- the agreement between A and B & Co. is unlawful (Section 23 of the Indian Contract Act). The consideration or object of an agreement is unlawful if it involves or implies injury to the person or property of another. Similar view on similar facts was given in Anthrop v. Neville and Shackel v. Rosier.

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