Assertion :A void contract is not necessarily illegal. Reason: Every illegal contract is void.

Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

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Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion

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Assertion is correct but Reason is incorrect

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Both Assertion and Reason are incorrect

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Solution

The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
Assertion says that a void contract is not necessarily illegal, i.e. there could be plenty of other reasons to make a contract void (including the illegality). Also a void contract is not punishable by law but an illegal contract is an offence.
Reason says that Every illegal contract is void, means the purpose or objective of the contract is unlawful and hence it is void ab initio. Hence reason is the correct explanation of Assertion. The correct answer is A.

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