Question

The following question consists of two statements, one labeled as ‘Assertion’ (A) and other as  ‘Reason’ (R). You are to examine these two statements carefully and select the correct answer.

Assertion (A): A void contract is not necessarily illegal

Reason (R): Every illegal contract is void.

Options

• Both A and R are individually true and R is the correct explanation of A.

• Both A and R are individually true but R is not the correct explanation of A

• A is true but R is false

• A is false but R is true

Answer 1

Both A and R are individually true but R is not the correct explanation of A

Explanation:

The Section 23 of Indian Contract Act defines consideration or object of an agreement is lawful unless it is forbidden by law or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies, injury to the person or property of another, or the court regards it as immoral, or opposed to public policy.