Question

Which of the following is NOT a valid contract under Indian law?

• A. An agreement without consideration
• B. An agreement made by a person with a minor
• C. An agreement to sell property without registration
• D. An agreement to perform an illegal act

Hint:

Always check the legality of the object and the capacity of parties when determining the validity of a contract under the Indian Contract Act.

Answer 1

The Correct Option is D

Step 1: Understand the essentials of a valid contract under Indian law
Under the Indian Contract Act, 1872, a valid contract requires a lawful object, consideration, competent parties, and free consent as per Section 10.
Step 2: Analyze each option
- Option (1): An agreement without consideration is generally not valid, but there are exceptions (e.g., agreements based on natural love and affection under Section 25). It can be valid in some cases.
- Option (2): An agreement with a minor is void as per Section 11, since minors lack the capacity to contract. However, the question asks for a contract, and this is void ab initio, not a contract.
- Option (3): An agreement to sell property without registration may still be a valid contract, though registration may be required for enforcement under the Transfer of Property Act, 1882.
- Option (4): An agreement to perform an illegal act is void under Section 23, as the object is unlawful, making it not a valid contract.
Step 3: Conclusion
An agreement to perform an illegal act is explicitly not a valid contract under Indian law due to its unlawful object.