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An agreement to do an illegal act e.g., to share the earnings of a smuggling business, is
  • a)
    Valid
  • b)
    Void
  • c)
    Voidable
  • d)
    Contingent
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
An agreement to do an illegal act e.g., to share the earnings of a smu...
Explanation:
An agreement to do an illegal act, such as sharing earnings from a smuggling business, is considered void. Here's why:
1. Definition of Void:
- A void agreement is one that is not enforceable by law and has no legal effect.
- It is essentially treated as if it never existed.
2. Illegal Acts:
- Any agreement that involves or promotes an illegal act is considered void.
- In this case, the agreement to share earnings from a smuggling business falls under an illegal act.
3. Public Policy:
- Agreements that are against public policy or contrary to the law are not recognized by the legal system.
- Sharing earnings from a smuggling business is against public policy and is illegal.
4. Consequences of Void Agreement:
- Since the agreement is void, it cannot be enforced in a court of law.
- The parties involved cannot seek legal remedies or claim any rights or benefits arising from the agreement.
5. Importance of Valid Agreements:
- Valid agreements are necessary for maintaining order and upholding the principles of justice and fairness.
- Illegal actions should not be encouraged or rewarded, hence the void status of such agreements.
In conclusion, an agreement to do an illegal act, like sharing earnings from a smuggling business, is considered void because it goes against public policy and has no legal effect.
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Most Upvoted Answer
An agreement to do an illegal act e.g., to share the earnings of a smu...
Agreements that are illegal in nature are not acceptable by law and all agreements that are invalid in the eyes of law are Void.
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Community Answer
An agreement to do an illegal act e.g., to share the earnings of a smu...
Explanation:

An agreement to do an illegal act, such as sharing the earnings of a smuggling business, is considered void. Let's understand why this is the case:

1. Void Agreement:
- A void agreement is a contract that is not enforceable by law and has no legal effect. It is essentially treated as if it never existed.
- Section 23 of the Indian Contract Act, 1872 states that agreements that are against public policy or involve illegal activities are void.
- In the case of an agreement to do an illegal act, it goes against public policy and is therefore considered void.

2. Public Policy:
- Public policy refers to the principles and standards that guide the legal system and are based on what is considered morally right and in the best interest of the public.
- Agreements that go against public policy are not recognized by the law and are deemed void.
- The sharing of earnings from a smuggling business is an illegal act as it involves engaging in illegal activities and evading taxes or duties.
- Such an agreement is considered against public policy and therefore void.

3. Consequences of a Void Agreement:
- Since a void agreement is considered to have no legal effect, it cannot be enforced by any party.
- Neither party can claim any rights or remedies under a void agreement.
- Any money or property transferred under a void agreement cannot be recovered through legal means.
- In the case of a smuggling business, the agreement to share earnings would be void, and neither party would be able to seek legal recourse to enforce the agreement or claim their share of the earnings.

Conclusion:
In conclusion, an agreement to do an illegal act, such as sharing the earnings of a smuggling business, is considered void. Such agreements go against public policy and are not enforceable by law. It is important to adhere to legal and ethical principles when entering into agreements to ensure their validity and enforceability.
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An agreement to do an illegal act e.g., to share the earnings of a smuggling business, isa)Validb)Voidc)Voidabled)ContingentCorrect answer is option 'B'. Can you explain this answer?
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