Multiple choice

G paid Rs.1,00,000 to H to influence the head of the Government Organisation in order to provide him some employment. On his failure to provide the job, G sued H for recovery of the amount. Which of the following is correct?

  1. The contract is valid and G can recover the amount from H.

  2. The contract is void as it is opposed to public policy and G cannot recover.

  3. G can recover the amount with interest.

  4. G can recover the amount of Rs.1,00,000 and damages.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Contracts to influence public officials are void under Section 23 of Indian Contract Act as opposed to public policy. G paid bribes for employment - this is illegal consideration. Courts will not enforce such contracts or assist in recovering money paid under them. G cannot recover the amount as courts leave parties where they find them for illegal contracts.