Each question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles except the principles that are given herein below for every question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion' arrived at may be unacceptable for any other reason. It is not the object of this section to test your knowledge of law.
PRINCIPLE: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void.
FACTS: 'X', promises to pay 'Y' Rs. 50,000, if he ('Y') commits a crime. 'X' further promises to indemnify him ('Y') against any liability arising thereof. 'Y' agrees to act as per X's promise.
Which of the following derivations is CORRECT?
Correct Answer :
There is an agreement between 'X', and 'Y' which cannot be enforced by the court of law
Solution :
Correct Answer: There is an agreement between 'X', and 'Y' which cannot be enforced by the court of law
Step-by-Step Explanation:
1. Understanding the Principle:
The given legal principle states that the consideration or object of an agreement is unlawful if it is forbidden by law. Furthermore, any agreement whose consideration or object is unlawful is void. A void agreement has no legal effect and cannot be enforced in a court of law.
2. Analyzing the Facts:
In the given facts, 'X' promises to pay 'Y' Rs. 50,000 if 'Y' commits a crime, and also promises to indemnify 'Y' against any resulting liability. 'Y' agrees to this proposal. The object of this agreement is the commission of a crime, which is explicitly forbidden by law.
3. Applying the Principle to the Facts:
Since committing a crime is forbidden by law, the consideration and object of the arrangement between 'X' and 'Y' are unlawful. Applying the principle, an agreement with an unlawful object is void. Because it is void, it does not create any legally binding obligations or a valid contract, meaning it cannot be enforced by any court of law.
Conclusion:
While an agreement has been reached between 'X' and 'Y', it is unlawful and void, and therefore cannot be enforced by the court of law.
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