Law of Malaysia Section 24 state that, the consideration or object of an agreement is lawful, unless it is forbidden by a law. It is of such a nature that, if permitted, it would defeat any law. Besides that, the agreement is lawful unless it is fraudulent, it involves or implies injury to the person or property of another or the court regards it as immoral, or opposed to public policy. In each of the above cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is void. In Section 24, we can refer to the case of Charles Ooi Kiah Inn v Kukuh Maju Industries Sdn Bhd1. In this case, the defendants entered into an agreement with the plaintiff under the terms of which two civil suits were compromised. The Defendants also executed a guarantee. The Plaintiff had, while the disputes were afoot, lodged a police report alleging that he had been cheated. As part of the compromise the Plaintiff agreed to withdraw the charges set out in the Police Report. Subsequently, the Plaintiff sued on the guarantee for the balance remaining unpaid under the principal agreement. The Court held that the agreement in question was one that stifled a prosecution and was therefore illegal.
A contract may be illegal because a statute makes it illegal. The illegally may relate to the nature of the contract itself, or as to the way in which it is performed. If a contract is illegal then it will generally be unenforceable. Certain types of contract are void because they contravene public policy. In Section 24 (e) it can be divided into two which are immoral and against the public policy.
In this era of globalization, we can see a lot of immoral things happened. Immoral is actually defined as it is against the principles or habits with respect to right or wrong conduct. Immoral purposes is a negative action and also illegal. Examples of immoral things are prostitution, robbery, homosexual,
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