A agrees to pay Rs 30 000 to B a rival shopkeeper if he closes his business in A rsquo s locality on...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

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A agrees to pay Rs 30,000 to B, a rival shopkeeper, if he closes his business in A’s locality only. This agreement is

Valid

Voidable

Void

None of the above

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Explanation:

- Option 1: Valid

- A valid contract is legally binding and enforceable. Here, the agreement to pay for closing a business to reduce competition is not in the public's interest.

- Option 2: Voidable

- A voidable contract is valid unless one party opts to void it. Such agreements often involve consent issues or misrepresentation.

- Option 3: Void

- A void contract is unenforceable and has no legal effect. Agreements restricting trade or competition are typically void as they go against public policy.

- Option 4: None of the above

- This option suggests that none accurately describe the agreement, which is not applicable as per the explanation above.