Question:

All contracts are agreements. Only agreements enforceable by law are contracts. Y is a government official tasked with issuing driving licenses to applicants who meet the criteria. X has applied for a driving license but does not meet the criteria. X and Y enter into an oral agreement that X will pay Y Rs. 5000 to issue a driving license to X. With reference to the facts given above, X says “I have entered into a contract with Y.”

  • X is wrong because the agreement is not in writing.
  • X is wrong because an agreement not enforceable by law is not a contract.
  • X is right.
  • There is insufficient information to reach the conclusions in Options a, b and c
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The Correct Option is B

Solution and Explanation

The correct option is (B): X is wrong because an agreement not enforceable by law is not a contract.
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