Bussines law

MENTOR-MS. SHILPI SAXENA

VARTIKA DIVYANSH MISHRA AMIT PANDEY ANKUR BURMAN GOKUL DHANANJAY SUMIT VINAY ABID

The object or consideration of an agreement is un lawful in the following cases

SUMIT

An act or undertaking is forbidden by law:A –when it is punishable by the criminal law of

the country.B –when it is prohibited by special legislation

or regulations made by a competent authority under powers derived from the legislature.

GOKUL

M lets out his house to R knowing that R will use it as a gambling den. R refused to pay rent. Can M recover?

No; agreement being unlawful.

GOKUL

A promises to pay a certain amount of money to B who is an intended witness in a suit against A , in consideration of B’s absenting himself at the trial . B absents but fails to get the money .

(Q)-Can he recover ?

VARTIKA

A cannot recover the money. Because an agreement which tends to create

a conflict between interest and duty is illegal and void.

VARTIKA

A requested B an editor of newspaper to publish a defamatory article against C and promise to indemnify B against the consequence arising from the libel published. Is the agreement void or not

AMIT

Because –It involves injury to C and the editor cannot

recover the amount from A.REFERANCE CASE---(W.H.Smith & Sons Vs. C. Clington 1909)

AMIT

A, entered into an agreement with B and engaged B for the purpose of performing puja (prayer) for A’s success in a case (suit) which he had before the court & promised to pay RS 4000 in the event of success. A successed in the case(suit). B sued A for the amount agreed upon. Will B succeed?

divyansh

No , according to section 23 ; B will not succeed as the object of interfere with the course of justice, making the agreement illegal & void.

divyansh

Bhagwan Datt Shastri v/s Raja Ram

divyansh

A let a flat to B at a rent of RS 1200 a year. With view to reduce the municipal tax A made two agreement with B.One by which the rent was started to be Rs 450 only and the other , by which B agree to pay Rs 750 for services in connection with the flat. Held, A could not recover Rs 750 since the agreement was made to defraud the municipal authority and thus void [Alexander v. Rayson(1936)1K.B.169] Abid

X and Y make a agreement that X will give money to Y to enable her to seek divorce from her husband and after the divorce, will marry Y.

Is agreement void or not?

SUMIT

X was not allowed to recover money . Because – the agreement aimed at

encouraging extra-marital relations. REFERANCE CASE –(RAORANI VS. GULABRANI) ILR. 1942

ALLAHABAD COURT

SUMIT

A, while his wife B was alive , promised to marry C in the event of B’s death. Subsequently B died but A refused to marry .

C sues A for damages for breach of promise. Will she succeed?

jay

C will not succeed because an agreement for future marriage ,after the death of first wife is against good public morals and hence illegal and void.

REFERANCE CASE – (wilson vs.carnley ) 1908 1 K.B.729.

jay

A promise to sell his cow to B for rs.500 if cow gives 6 kg milk every day, but for Rs.10 only If it fails to do so. The cow fails , where upon B demands the cow for Rs.10 as agreed. A refuse. B brings a sue against him,Will B succeed?

ankur

B will not succeed as the transaction, through ostensibly a sale is reality a wager.

REFERANCE CASE—(Borgden vs. Mariott,5 LJ 302)

ankur