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Question

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X promises to pay Rs 1,00,000 to Y in order to induce him to retire so as to provide room for Xs appointment to the public office held by Y. Is this agreement valid?

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Solution

Solution: Section to which the given problem relates: Section 23.
Decision : The agreement is void.
Reason: The agreement is opposed to public policy as it is for the sale of public office.
[Leading case: Venkataramanaya v. J.M. Labo]

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