Are the following agreement valid ? Give reason : (1) A agrees to sell B "My White Horse" for Rs. 5,000 or Rs. 10,000. A promise made by the loser on wages to pay the amount lost in consideration of the (2) winner's forbearance to post him as a defaulter. A sells the goodwill of his business to B and agrees with him to refrain from carrying (3) on a similar business within specified local limits. A agrees to marry C's daughter in consideration of dowry to be paid by C. (4)
Answers
When one involved party makes a proposal or gives an offer to the another, the agreement is legitimate.
- Thus, the validity of given agreements is -
(1) A agrees to sell B "My White Horse" for Rs. 5,000 or Rs. 10,000. - Not valid - As a certain amount is not promised.
(2) A promise made by the loser on wages to pay the amount lost in consideration of the winner's forbearance to post him as a defaulter. - Valid - Consideration and promise are involved.
(3) A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. - Valid - Till the time B or his successor in interest carries on like business as in.
(4) A agrees to marry C's daughter in consideration of dowry to be paid by C. - Invalid - Dowry is not legal.