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CSEET · Business Laws and Management · Elements of Law of Contracts

Ravi and Sameer, both adults of sound mind, agree that Ravi will pay Sameer ₹50,000 for a lawful service, and both consent freely. The agreement is, however, one that the Contract Act expressly declares to be void. Under Section 10, what is the position?

It is not a contract under Section 10. The section makes agreements contracts only when, besides free consent, competent parties, lawful consideration and lawful object, they are not expressly declared void. Free consent and competence alone cannot save an agreement the Act expressly declares void.

  1. AIt is a valid contract because consent was free
  2. BIt is a valid contract because the parties are competent
  3. CIt is not a contract under Section 10, as it is expressly declared voidCorrect
  4. DIt is a contract but enforceable only by Sameer

Explanation

Section 10 makes agreements contracts only if they are not hereby expressly declared to be void. Free consent and competence are necessary but not sufficient, so an agreement expressly declared void does not qualify as a contract under the section.

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