Question

Jai, a business owner, enters into an agreement with Sana, a government official. Jai promises to pay Sana ₹10 lakhs in exchange for her influence in securing a lucrative government contract for his company. Both parties sign the agreement and begin to execute it. Identify the nature of this agreement and discuss the legal consequences for both parties involved.

Hint:

Contracts involving illegal acts such as bribery are void and attract criminal liability for all parties involved.

Answer 1

The agreement between Jai and Sana is a contract based on bribery and corruption, which is illegal and void under the law.
Nature of the Agreement: The agreement is void and unenforceable because it involves illegal consideration — paying money in exchange for influence in government decisions.
Legal Consequences for Jai: Jai is engaging in corruption and can be prosecuted under anti-corruption laws. The contract cannot be enforced in a court of law, and Jai may face penalties, fines, or imprisonment.
Legal Consequences for Sana: Sana, as a government official, is guilty of accepting a bribe, which is a criminal offence. She can be dismissed from service and subjected to legal penalties including imprisonment.
Effect on Contract: The contract is void ab initio (from the beginning), meaning it has no legal effect and cannot be legally enforced by either party.
Thus, such agreements are not protected by law and attract strict legal consequences to discourage corruption.