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Question

Principle : Sale of liquor is illegal. All agreements relating to prohibited items do not exist in the eyes of law.
Facts : 'A' entered into an agreement with 'B' for the sale of liquor. 'A' failed to supply the agreed quantity of liquor to 'B'.

A
'B' cannot bring any legal action against 'A'.
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B
'A' and 'B' can initiate appropriate legal proceeding against each other.
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C
'A' can bring a legal action against 'B'.
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D
'B' can bring a legal action against 'B'.
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Solution

The correct option is A 'B' cannot bring any legal action against 'A'.
According to the section 24 of Indian Contract Act defines the agreement is void if considerations and objects in part is unlawful. If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single objects, is unlawful, the agreement is void. The reasonable conclusion drawn that B cannot bring any legal proceeding against A. Option (a) is correct.

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