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A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department. 
  • a)
    Valid
  • b)
    Void 
  • c)
    Voidable 
  • d)
    Illegal
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A agrees to pay 10 lacs to B if B procures an employment for A in Inco...
Section 23 of the Indian Contract Act, 1872 states that a consideration for a contract is not lawful if it falls in any of the following categories:-
(1) the consideration is forbidden by law.
(2) the consideration is of a nature such that if allowed, would defeat the provision of any law.
(3) fraudulent
(4) implies any injury to person or property of another
(5) the consideration is regarded by Court as immoral or opposed to public policy.
Obtaining employment in return for money can be regarded as forbidden by law or opposed to public policy and has also been treated as unlawful consideration under illustration (f) to the provision. Section 10 of the Act makes it compulsory for an agreement to have a lawful consideration to be valid and enforceable by law.
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Most Upvoted Answer
A agrees to pay 10 lacs to B if B procures an employment for A in Inco...
Understanding the Agreement
In this scenario, A has agreed to pay B a sum of 10 lacs for securing employment in the Income Tax Department. The legality of this agreement needs careful examination under contract law principles.
Nature of the Agreement
- The agreement between A and B revolves around a contingent payment based on obtaining employment.
- Such agreements fall under the category of "contingent contracts," which depend on the occurrence of a specific event.
Legal Framework
- According to the Indian Contract Act, 1872, an agreement is void if it involves illegal activities or is against public policy.
- Employment in government departments is typically regulated by specific rules and norms, which prohibit any form of bribery or inducement.
Why the Agreement is Void
- The intention behind the agreement is to circumvent the lawful employment process, which is considered against public policy.
- As B is being compensated for securing a government job, it raises ethical and legal concerns regarding fairness and integrity in public service recruitment.
- Such practices can lead to corruption, which is a serious offense under the law.
Conclusion
- Given these considerations, the agreement between A and B is deemed void as it contravenes public policy and encourages unethical practices.
- Therefore, option 'B' is the correct answer, confirming that the agreement lacks legal standing and enforceability.
This understanding emphasizes the importance of adhering to ethical standards in professional dealings, particularly in government employment.
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A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.a)Validb)Voidc)Voidabled)IllegalCorrect answer is option 'B'. Can you explain this answer?
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A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.a)Validb)Voidc)Voidabled)IllegalCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.a)Validb)Voidc)Voidabled)IllegalCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.a)Validb)Voidc)Voidabled)IllegalCorrect answer is option 'B'. Can you explain this answer?.
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