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    Question

    Under the Indian Contract Act, a collateral contract

    that involves an illegal object but is signed voluntarily by both parties is later disputed. Which principle of law will apply?
    A The contract is voidable Correct Answer Incorrect Answer
    B The contract is enforceable Correct Answer Incorrect Answer
    C The contract is void ab initio Correct Answer Incorrect Answer
    D The contract is quasi-legal Correct Answer Incorrect Answer

    Solution

    A contract with illegal object is void ab initio, even if signed voluntarily (Section 23 of Indian Contract Act).

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