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Y promises X a single monthly salary of ₹1,00,000 for supervising both a lawful pickle business and…

An object forbidden by law is unlawful under section 23. The facts expressly describe illicit narcotics trafficking, which falls outside lawful dealings permitted by the…

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Y promises X a single monthly salary of ₹1,00,000 for supervising both a lawful pickle business and illegal trafficking in narcotic drugs. The parties make one indivisible bargain for both activities. What is the status of that agreement under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer C

An object forbidden by law is unlawful under section 23. The facts expressly describe illicit narcotics trafficking, which falls outside lawful dealings permitted by the Narcotic Drugs and Psychotropic Substances Act, 1985.

Section 24 makes the indivisible bargain void where part of the single consideration or objects is unlawful. A lawful component of the same bargain cannot save it.

Option feedback

Option A

The statute makes the indivisible agreement void. X is not given an option to affirm it.

Option B

The lawful work does not cure the unlawful part of the single bargain.

Option C

The single salary is promised for combined lawful and unlawful work. Sections 23 and 24 render the agreement void.

Option D

The statute makes the agreement void without any election by Y.

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