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Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.
Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.?
Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.?
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Priya, aged 58 years was employed in a Government Department. She was ...
Validity of Agreement under Indian Contract Act, 1872
Provisions of the Indian Contract Act, 1872:
- Section 23 of the Indian Contract Act, 1872 states that any agreement that involves consideration for restraining a person from exercising a lawful profession, trade or business is void. This provision is in place to prevent agreements that may restrict a person's freedom to work.
- Section 10 of the Act specifies that for an agreement to be considered valid, it must involve free consent of both parties, lawful consideration, lawful object, and be made by parties who are competent to contract.
Analysis of the Agreement:
- In this case, Priya is being induced to retire voluntarily from her position in the Government Department in exchange for a sum of 15 lakhs from Mahesh. This agreement raises concerns under Section 23 of the Indian Contract Act as it involves consideration for restraining Priya from carrying out her lawful profession until retirement age.
- Additionally, there may be issues regarding the free consent of Priya, as she may feel pressured to accept the offer due to the inducement of the monetary consideration.
Conclusion:
- The agreement between Priya and Mahesh to induce Priya to retire voluntarily in exchange for a sum of money may not be considered valid under the Indian Contract Act, 1872. This is due to the potential violation of Section 23 and concerns regarding free consent.
- It is important for parties entering into agreements to ensure that the terms are in compliance with the provisions of the Indian Contract Act to avoid any legal implications.
Provisions of the Indian Contract Act, 1872:
- Section 23 of the Indian Contract Act, 1872 states that any agreement that involves consideration for restraining a person from exercising a lawful profession, trade or business is void. This provision is in place to prevent agreements that may restrict a person's freedom to work.
- Section 10 of the Act specifies that for an agreement to be considered valid, it must involve free consent of both parties, lawful consideration, lawful object, and be made by parties who are competent to contract.
Analysis of the Agreement:
- In this case, Priya is being induced to retire voluntarily from her position in the Government Department in exchange for a sum of 15 lakhs from Mahesh. This agreement raises concerns under Section 23 of the Indian Contract Act as it involves consideration for restraining Priya from carrying out her lawful profession until retirement age.
- Additionally, there may be issues regarding the free consent of Priya, as she may feel pressured to accept the offer due to the inducement of the monetary consideration.
Conclusion:
- The agreement between Priya and Mahesh to induce Priya to retire voluntarily in exchange for a sum of money may not be considered valid under the Indian Contract Act, 1872. This is due to the potential violation of Section 23 and concerns regarding free consent.
- It is important for parties entering into agreements to ensure that the terms are in compliance with the provisions of the Indian Contract Act to avoid any legal implications.
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Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.?
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Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.? 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 Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.?.
Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.? 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 Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Priya, aged 58 years was employed in a Government Department. She was going to retire after two years. Mahesh made a proposal to Priya to apply voluntary retirement from her post so that Mahesh can be appointed in her place. Mahesh offered a sum of 15 lakhs as consideration to Priya in order to induce her to retire.Priya agreed to receive the consideration and accepted the above proposal to retire from her office. Whether the above agreement is valid? Explain with reference to provision of Indian Contract Act, 1872.?.
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