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In the above question the agreement is void on ground of
Unlawful consideration
Public policy
Both (a) and (b)
Neither(a) nor (b)
- Unlawful consideration means the agreement is based on something that is forbidden by law, like committing a crime.
- Public policy refers to agreements that are harmful to society, or go against the interests/morals of the public, even if not specifically illegal.
- Sometimes, an agreement can be void for both reasons, when the consideration is unlawful and also against public policy.
- If the question situation concerns a contract that is simply against public morals or societal interest (even if not directly illegal), then it is void on the ground of public policy.
- If it directly involves forbidden acts or illegal consideration, then option 1 applies.
- If both apply, consider option 3.
- If neither applies, then option 4.
Correct Answer: Option 2 - Public policy
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