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Anand and Krish agree that Anand shall pay him Rs. 1,00,000 if Krish shall deliver Anand certain amount of Opium (a banned drug in the country) afterwards. Is it a valid Contract? Justify your decision with the relevant provisions of the Indian Contract Act, 1872.

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Final answer:

The contract between Anand and Krish for the delivery of Opium is invalid under the Indian Contract Act, 1872, as the sale of a banned substance (Opium) is unlawful and opposed to public policy.

Step-by-step explanation:

The scenario described involves a contract for the sale and delivery of Opium, which is a banned drug under the laws of the country. According to the Indian Contract Act, 1872, specifically section 23, the consideration or object of an agreement is considered unlawful if it is forbidden by law, if it would defeat the provisions of any law, or is fraudulent, involves or implies injury to the person or property of another, or the court regards it as immoral, or opposed to public policy. In this case, since the object (Opium) is a banned substance, the contract between Anand and Krish would be considered void because the object is unlawful.

Furthermore, engaging in trade of a banned substance can lead to criminal liability. The contract not only lacks legal standing but also violates public policy and is directly against the provisions of the law, rendering it invalid.

User Oleh Dokuka
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