Correct option is C
If the object of an agreement is forbidden by law, the agreement is both void as well as illegal. According to Section 23 of the Indian Contract Act, 1872, an agreement whose object or consideration is unlawful is void. If the agreement involves an act forbidden by law, it is not only void but also illegal, meaning it is punishable and cannot be enforced by law.
Information Booster:
The law distinguishes between void and illegal agreements. A void agreement is simply unenforceable, whereas an illegal agreement is not only unenforceable but also considered a criminal or civil wrong. This ensures that no legal obligations can arise from an agreement with an unlawful objective.
Additional Knowledge:
· Void only but not illegal: Applies to agreements without legal consequences but not necessarily involving illegal activities.
· Illegal only but not void: Incorrect because illegal agreements are inherently void.
· Voidable: Refers to contracts that are valid until voided by one party due to factors like fraud or coercion.
