Question:

Principle: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.

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In cases of illegal contracts, no legal action can be brought by either party in most jurisdictions.
Updated On: Aug 14, 2025
  • B can bring a legal action against A.
  • B cannot bring any legal action against A.
  • A can bring a legal action against B.
  • A and B can initiate appropriate legal proceeding against each other.
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The Correct Option is B

Solution and Explanation

The principle provided in the question states that the sale of liquor is illegal and all agreements related to prohibited items (such as the sale of liquor) are not valid in the eyes of the law. The contract between ‘A’ and ‘B’ for the sale of liquor falls into the category of an illegal agreement. As per contract law, when an agreement is illegal, it cannot be enforced by either party, and neither party can seek legal redress for the failure to fulfill obligations under such an agreement.
Since the sale of liquor is prohibited by law, ‘B’ cannot bring a legal action against ‘A’ for failing to supply the liquor. This would violate the principle of not recognizing illegal contracts in the eyes of the law.
Thus, the correct answer is (B).
Option (A) is incorrect because the law does not allow the enforcement of an illegal contract. Option (C) is incorrect for the same reason – 'A' cannot legally take action for not fulfilling an illegal contract. Option (D) is incorrect because both parties cannot initiate legal proceedings under an illegal contract.
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