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Question
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.
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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.
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