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Principle: the Sale of Liquor is Illegal. All Agreements Relating to Prohibited Items Do Not Exist in the Eyes of Law. Facts: 'A‘ Entered into an Agreement with 'B‘ for the Sale of Liquor. - Legal Reasoning

Question

MCQ

Principle: The sale of liquor is illegal. All agreements relating to prohibited items do not exist in the eyes of law.  

Facts:  'A‘ entered into an agreement with 'B‘ for the sale of liquor. 'A‘ failed to supply the agreed quantity of liquor to B. 

Options

  • B can bring legal action against A. 

  • B cannot bring any legal action against A. 

  • A can bring legal action against B. 

  • A and B can initiate appropriate legal proceedings against each other. 

Solution

B cannot bring any legal action against A. 

Explanation:

According to Section 24 of the Indian Contract Act defines that agreement is void if considerations and objects in part is unlawful. If any part of a single consideration for one or more objects, or anyone or any part of any one of several considerations for a  single object, is unlawful, the agreement is void.  The reasonable conclusion is drawn that B cannot bring any legal proceeding against A is the correct answer.   

Concept: Law of Torts (Entrance Exams)
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