Solve. X borrowed 1,000 from Y. X executed a bond promising to work for Y without pay for 2 years arid in case of default agreed to pay interest at 10% per month and the principal amount at once. Is this agreement valid?
Open in App
Solution
Solution: Section to which the given problem relates: Section 23. Decision: This agreement is void. Reason: The object of this agreement is unlawful as it involves an injury to another person. [Leading case: Ram Saroop v. Bansi Mandar]