CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law
Anil promises to supervise, for Bharat, a lawful manufacture of cotton cloth and also an illegal traffic in other articles, for a single salary of Rs 10,000 a month promised by Bharat. What is the effect under the Indian Contract Act, 1872?
The agreement is void as a whole. Under Section 24, where any part of a single consideration for one or more objects is unlawful, the entire agreement is void. Because one salary covers both lawful manufacture and illegal traffic, the lawful part cannot be separated and saved.
- AThe agreement is valid to the extent of the lawful manufacture only
- BThe agreement is void, since part of the object and consideration is unlawfulCorrect
- CThe agreement is voidable at Bharat's option
- DThe agreement is valid, and only the illegal part is unenforceable
Explanation
Section 24 provides that if any part of a single consideration for one or more objects, or any part of any one of several considerations for a single object, is unlawful, the agreement is void. The salary is a single consideration for both a lawful and an unlawful object, so the whole agreement fails and is not severed.
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