Definition of "Lawful object"

Darren Davis real estate agent

Written by

Darren Daviselite badge icon

Engel & Volkers

As one of the principles of contract, the lawful object meaning can be defined as an object or action which is authorized, approved, and not prohibited by law. A contract to be legal requires legally competent parties, mutual consent, a lawful object, and acceptable consideration. The concept of a lawful object also implies an ethical quality in that the object under consideration is not only legal; it is also ethical and acceptable by society at large. 

So what is a lawful object?

The lawful object definition is something that is legal, implying that something that is illegal can not be the object of a contract. For example, by this definition, a contract to sell a stolen car is a voidable contract from the beginning, as is it illegal to sell a stolen car. Because of this, we can say that a lawful object can not be a crime. For more information regarding lawful objects in legal contracts, we suggest contacting a lawyer or a real estate attorney.

What do you mean by a Lawful Object in Real Estate?

A real estate contract requires certain elements in order to be valid, much like most other contracts. One of these elements is the lawful object or legal purpose. While the agreement can also be verbal, if it does not have lawful objective real estate, it can be voided by the courts. The object of a contract or agreement is its purpose or design. If the purpose of the contract is illegal, the contract can be voided.

The parties involved can not enter into a contract to do illegality or crime during a real estate transaction. The object of a real estate contract must adhere to the law and not restrict the enforcement of the law. This is why a contract signed between two parties that dabble in real estate fraud can not be legal if the purpose of the contract is fraudulent. Similar to the example involving a car from above, a contract to sell a house that is not legally yours is voided because you can not sell a property that does not legally belong to you.

Another principle that can void a contract is an illegal consideration.

Example of Contract Voided based on the requirement of Lawful Object

If a person is struggling to meet their mortgage payments while also dealing with other financial obligations, they might be tempted to declare bankruptcy, transfer the property to the mortgage broker and defraud their other creditors. Such a transfer is illegal, and the courts will void the contract created for the purpose.

Comments for Lawful Object

Jerry Frank Jerry Frank said:

Can a real estate sales contract be voided because the owner refuses to correct a modified staircase that no longer is in compliance to building codes.

Jun 23, 2021  14:01:14

 
Real Estate Agent

Hey Jerry! Thank you for reaching out to us. While building code violations can differ from one state to another, and you should check with your local real estate agents or real estate attorneys, in general, such a situation can void a contract. For example, if the buyer was informed of the modified staircase or the issue was discovered by an inspector, the seller could correct the modification. At the same time, they can choose not to, and the buyer can go through with the purchase. In this situation, a renegotiation should occur as the amount needed for the repairs should be excluded from the established price. However, the buyer can renege on the contract, which can cause the cancellation of the contract.

Jun 25, 2021  12:33:51
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Something that has been built and physically exists at a specified location, such as a building, garage, etc. Something consisting of related parts, such as the organization and terms of ...

In a broader sense, Full Disclosure means presenting all information (significant or not, classified or not) related to a certain matter. In Real Estate, the term “Full ...

When you hear someone in real estate saying there will be a boring test, they don't mean a dull exam is coming up. What is a soil boring test? Let's find out the meaning of a boring test! ...

The individual who receives an interest in a life estate after the original life tenant's interest expires. This normally occurs after the death of the life tenant. For example, Mrs. ...

Legal order for a person to present at a deposition or trial documents in his possession, such as related to a real estate transaction. ...

Unit of measure for the change in interest rates for loans. One basis point equates to 1 percent of 1 percent, that is, 0.01 percent. Therefore, one hundred basis points equals 1 percent. ...

Landlord's right to receive the value of the tenant's property to pay for unpaid rents or for damages to the leased premises. ...

Current cost to replace property with an identical property after allowing for the depreciated value of the property. ...

A partition or wall that provides no support to the structure in which it is located. For example, a nonbearing partition or wall does not support any floors above it. A partition which ...

Popular Real Estate Questions