Question

A agrees to pay Rs. $5$ lakhs to B if he (B) procures an employment for A in Income Tax Department. This agreement is _________________.

• A. void
• B. valid
• C. voidable
• D. contingent

Answer 1

The correct option is A void

Section 23 of the Indian Contract Act, 1872 states that a consideration for a contract is not lawful if it falls in any of the following categories:-

(1) the consideration is forbidden by law.

(2) the consideration is of a nature such that if allowed, would defeat the provision of any law.

(3) fraudulent

(4) implies any injury to person or property of another

(5) the consideration is regarded by Court as immoral or opposed to public policy.

Obtaining employment in return for money can be regarded as forbidden by law or opposed to public policy and has also been treated as unlawful consideration under illustration (f) to the provision. Section 10 of the Act makes it compulsory for an agreement to have a lawful consideration to be valid and enforceable by law.