In the figure above, A B made an offer and received an acceptance of it. However, the purpose of this contract, that is, the commission of theft by B, is not legal and is not criminal in nature. It is precisely this objective of the agreement that makes it an illegal agreement. Both parties are criminally responsible for their actions within the scope and scope of the Indian Penal Code (IBC). In addition, this contract is invalid from the outset, that is, invalidated from the outset. This contract cannot be legally enforced because it requires the execution of a particular act, prohibited by law and constituting a criminal offence. Any agreement by which a person is deterred from practising a profession, a legitimate industrial or commercial activity is, in this respect, not concluded. An important point in this regard is to remember it. If one party is aware of the impossibility of benefit and enters into an agreement with the other party, the other party will be entitled to compensation for the loss or injury it has suffered. Such an agreement boils down to fraud, as discussed on page 17 of the act. For example, A knew that the wood for which he made a sale agreement to B had already been destroyed by fire, so his agreement with B was not covered by this section, but by the S.17 of the law. Another good example is example (c) of S.56, where A prohibits marriage contracts with B, already married to C and subject to polygamy by the law of which he is subject.
A must be compensated B for the loss it suffered as a result of non-fulfilling the promise. An agreement on the execution of an illegal act is an example of non-agreement. For example, a contract between dealers and buyers is a non-contract, simply because the terms of the contract are illegal. In such a case, neither party can take legal action to enforce the contract. An inconclusive contract is invalid from the outset, while a cancelled contract may be cancelled by one or all parties. A cancelled contract is not invalidated by initio, but becomes invalidated later due to certain changes in the condition. In summary, the contracting parties do not have discretion in a nullity contract. Contracting parties are not entitled to enforce a nullity contract.  No right is bearable for a contract that requires the parties to inflict harm on the person or property of a person.
Since such conditions are subject to criminal sanctions, the courts cannot enforce these contracts and cancel them in their entirety. Contracts are cancelled in the event of an error or fraud by one of the parties. Contracts may be cancelled even if a party has entered into a contract under duress. There are a number of cases, such as a minor. B who enters into a contract for needs such as food, clothing and accommodation, in which the contract cannot be cancelled. These exceptions may also apply to people who do not have the intellectual capacity to enter into a contract without a guardian or representative. Any contractual agreement between two parties for illegal activities is also deemed undated. For example, a contract between an illegal drug supplier and a drug dealer is not applicable from the outset because of the illegality of the agreed activity.
In India, trade has grown as a whole and it is desirable to develop trade. As a result, the strict provisions of page 27 expressly nullified any agreement that infringes the right to trade. Public order required that every citizen have the freedom to work for himself and that he has the benefit of work for himself or for the state.