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Which one of the following statements is right? I) A agrees to let her daughter be hired to B for…

Statements I, II and IV are right. Section 23 of the Indian Contract Act, 1872 renders an agreement with an immoral object or one opposed to public policy void; this covers…

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Which one of the following statements is right?
I) A agrees to let her daughter be hired to B for Concubinage. The agreement is void because it is immoral.
II) Public policy is an unruly horse.
III) A promises B to drop prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is enforceable, as its object is lawful. It would not be opposed to public policy.
IV) A contract for sale of goods whose tender shows that the price was intended to be paid out of the black money is opposed to public policy.

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Answer and explanation

Correct answer C

Statements I, II and IV are right. Section 23 of the Indian Contract Act, 1872 renders an agreement with an immoral object or one opposed to public policy void; this covers the concubinage arrangement and the stated black-money transaction. The unruly-horse metaphor expresses the difficulty of defining public policy. An agreement to suppress a robbery prosecution is opposed to public policy, so statement III is wrong.

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