Exception 2: Nor does this section make a contract contrary to contractual law, whereby two or more persons agree to refer to arbitration or to enforce a provision of a violation of the law on any issue that has already arisen between them. For example, an agreement between A and B, under which the application of another contract A and B cannot be requested after the expiry of a period of two years from the date of the breach of that contract, is invalid if Indian law permits it by other means that such enforcement be requested within three years from the date of the infringement. The doctrine does not apply to ordinary trade agreements to regulate and encourage trade during the existence of the contract, provided that any impediment to work outside the contract as a whole is focused on the use of the party`s services and not on their sterilization. Isolated jobs are a normal and necessary business incident and those who wish for the usefulness of the single agency must have the opportunity of other agencies themselves. Under this section, a betting agreement is an unsigned agreement. Exception in favour of certain prices for horse racing. In this section, it is stated that if the consideration or objective of the contract is totally or partially illegal, the agreement must be considered inconclusive. The working philosophy underlying this section is that if the illegal clause can be dissociated from the contract, then the whole contract is not considered invalid, but only the illegal part is considered invalid and the rest of the contract is considered valid, but if the illegal clause cannot be dissociated from the legal part , then the entire contract is considered illegal.  In the case of Gopalrao v. Kallappa, a person obtained a license to sell opium and ganja, with this restriction that he would not take a partner in the opium-ganja store without the permission of the collector. Subsequently, he admitted a partner without the collector`s permission, after receiving from him a fixed amount as a share of the capital. The new partner filed proceedings for dissolution and repayment of his money because of differences, but his claim was not accepted and the court found that it was impossible to separate the contract.
This derogation falls under section 25, paragraph 3, which specifies that a written undertaking signed by the debtor or his agent for the payment of the prescribed debt is enforceable, even if the contract is required to pay all or part of the amount. 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. Section 2 (d) of the Indian Contract Act of 1872 stipulates that consideration may be provided by “promisives or any other person” provided that this is done “at the request of the promisor.”