Question

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.

Factual Situation: A was arrested by the police for committing an offence and was subsequently granted bail by the Court. One of the conditions imposed by the Court for granting bail was that A arranges for a surety for ₹50,000. A approached B to be a surety. B agreed but insisted that they enter into a contract whereby A would deposit ₹50, 000 into B's account, which would be returned to A by B after the case was over.

Options

• The contract would be void since its effect is to defeat the provisions of the Cr.P.C. 

• The contract would be void because A cannot enter into a contract when a criminal case is going on against him

• The contract would be void because the Court is not a party to it

• The contract would be valid

Answer 1

The contract would be void since its effect is to defeat the provisions of the Cr.P.C. 

Explanation:

Option "The contract would be void since its effect is to defeat the provisions of the Cr.P.C." is correct because as per option "The contract would be void because A cannot enter into a contract when a criminal case is going on against him" criminal case is not mentioned, the option "The contract would be void because the Court is not a party to it" and "The contract would be valid" is not valid. The purpose of the agreement in the facts was to defeat the provision of Criminal procedure code which wants surety of a person's guarantee. So it has defeated the provision of the Law.