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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Contracts for illegal activities are not enforceable in the court of law, so no legal action can be taken regarding them.
Updated On: Aug 18, 2025
  • 'B' can bring a legal action against 'B'.
  • 'A' can bring a legal action against 'B'.
  • 'B' cannot bring any legal action against 'A'.
  • 'A' and 'B' can initiate appropriate legal proceedings against each other.
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The Correct Option is C

Solution and Explanation

As per the principle, any contract relating to the sale of illegal items, such as liquor in this case, is void and unenforceable in the eyes of law. Therefore, 'B' cannot bring a legal action against 'A' for failure to supply liquor.


Option (A) 'B' can bring a legal action against 'B': This is incorrect because 'B' cannot enforce an illegal contract.

Option (B) 'A' can bring a legal action against 'B': This is incorrect because the contract is illegal, and neither party can sue for breach.

Option (D) 'A' and 'B' can initiate appropriate legal proceedings against each other: This is incorrect because the agreement is illegal and thus unenforceable.
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