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CA Foundation · Business Laws · The Indian Contract Act, 1872

Ketan and Lata, both of Surat, agree that Ketan will pay Rs 5 lakh to Lata if she does not marry anyone for the next 10 years. Lata remains unmarried but Ketan refuses to pay. What is the legal position?

The agreement is void because it restrains the marriage of an adult, and the Contract Act declares every agreement in restraint of marriage of any person other than a minor to be void. Lata therefore cannot enforce it against Ketan.

  1. AEnforceable, because Lata performed the condition
  2. BEnforceable only for half the amount
  3. CVoidable, because Ketan did not consent freely
  4. DVoid, because it is an agreement in restraint of marriageCorrect

Explanation

Section 26 provides that every agreement in restraint of the marriage of any person, other than a minor, is void. Lata is an adult, so the restraint on her marriage makes the agreement void, regardless of her having kept her side. Nothing suggests lack of free consent, so the voidable option is wrong.

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