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A's estate is sold for arrears of revenue under the provisions of an Act of the Legislature, by which…

Illustration (i) to section 23 holds the agreement void, "as it renders the transaction, in effect, a purchase by the defaulter, and would so defeat the object of the law."…

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A's estate is sold for arrears of revenue under the provisions of an Act of the Legislature, by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser, and agrees to convey the estate to A upon receiving from him the price which B has paid. What is the status of the agreement between A and B?

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Correct answer A

Illustration (i) to section 23 holds the agreement void, "as it renders the transaction, in effect, a purchase by the defaulter, and would so defeat the object of the law." Section 23 makes an object unlawful if, when permitted, "it would defeat the provisions of any law". Putting B forward as a nominal buyer does not help, because the law looks at the substance: A ends up with the estate he is barred from buying.

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