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Ravi's estate is sold for arrears of revenue under a law that bars him, as the defaulter, from buying…

Section 23 treats an object as unlawful where allowing it would defeat the provisions of a law. The prior arrangement makes the barred defaulter the effective purchaser, so…

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Ravi's estate is sold for arrears of revenue under a law that bars him, as the defaulter, from buying it. By prior agreement with Ravi, Shyam purchases the estate and promises to convey it to Ravi on reimbursement of the price. Under the Indian Contract Act, 1872, what is the effect of their agreement?

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Answer and explanation

Correct answer B

Section 23 treats an object as unlawful where allowing it would defeat the provisions of a law.

The prior arrangement makes the barred defaulter the effective purchaser, so the agreement is void under illustration (i).

Option feedback

Option A

Shyam's formal purchase does not cure the unlawful object of conveying the estate to the disqualified defaulter.

Option B

Section 23 makes the agreement void because its object would defeat the legal bar on Ravi purchasing the estate.

Option C

The facts establish evasion of the statutory bar. Section 23 illustration (i) rests on that ground.

Option D

Section 23 makes the agreement void for its unlawful object.

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