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Section 58

Reciprocal promise to do things legal, and also other things illegal

of Contracts Act 1950

ActIn forceProvision 48 of 108
Section 58

Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promises is a contract, but the second is a void agreement.

A and B agree that A shall sell B a house for RM10,000, but that, if B uses it as a gambling house, he shall pay A RM50,000 for it.

The first set of reciprocal promises, namely, to sell the house and to pay

RM10,000 for it, is a contract.

The second set is for an unlawful object, namely, that B may use the house as a gambling house, and is a void agreement.

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