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Mr. “A” agrees that he shall sell Mr. B a house for ` 1,00,000/- but if Mr. B uses the house for “Gambling House” then Mr. B shall pay ` 1,50,000/- for the same. Explain the legality?
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Mr. “A” agrees that he shall sell Mr. B a house for ` 1,00,000/- but i...
Legality of Agreement with Condition

The agreement between Mr. A and Mr. B is legal, provided the condition of the agreement is not against the law. In this case, the condition of the agreement is that if Mr. B uses the house as a “Gambling House,” then he will have to pay ` 1,50,000/- for the same.

Legal Conditions

The condition imposed by Mr. A is legal because:

1. It is not against public policy - Gambling is not an illegal activity in India, but it is regulated by various state laws. Thus, the condition imposed by Mr. A does not violate any public policy.

2. It is not immoral or illegal - The condition is not immoral or illegal as the use of the house for gambling is not an illegal activity.

3. It is not opposed to any statute - The condition is not opposed to any statute as there is no law that prohibits the use of a house for gambling.

4. It is not fraudulent - The condition is not fraudulent as both parties have agreed to it with full knowledge.

5. It is not against the interest of any third party - The condition is not against the interest of any third party as it is a bilateral agreement between Mr. A and Mr. B.

Conclusion

In conclusion, the agreement between Mr. A and Mr. B is legal as the condition imposed by Mr. A is not against public policy, immoral, illegal, opposed to any statute, fraudulent, or against the interest of any third party. However, it is important to note that the use of the house for gambling must comply with the state laws.
Community Answer
Mr. “A” agrees that he shall sell Mr. B a house for ` 1,00,000/- but i...
If A chooses for legal then the first one is valid . If A chooses for illegal then the second is invalid.
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Mr. “A” agrees that he shall sell Mr. B a house for ` 1,00,000/- but if Mr. B uses the house for “Gambling House” then Mr. B shall pay ` 1,50,000/- for the same. Explain the legality?
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