(5) A clause in an agreement that all disputes are referred to arbitration by two competent London brokers and that their decision is final is: Q1. Principle: the sale of spirits is illegal. Not all agreements relating to contraband exist in the eyes of the law. 31. All illegal agreements are …….. (a) Null- ab- initio (b) Valid (c) Quota (d) Enforceable (A) The agreement is cancelled since the object and consideration for it are contrary to public policy. Question 6. Principle: any agreement the object or consideration of which is due to public policy is annulled. An agreement which tends to prejudice the public interest or the common good is contrary to public policy.

What constitutes an attack on the public interest or the common good depends on the times and circumstances. Situation: Manu has been working as a blacksmith in his village for many decades. Somu has been training with him for three years. Once his training is over, Somu makes an agreement with Manu not to create competing businesses in the same village as long as Manu lives. 28. « Consensus – ad – idem » means ……. (a) General consensus (b) Meeting of opinions on the same thing along the same lines (c) Reaching an agreement (d) Concluding a treaty (A) This Agreement is not applicable and is not applicable, as it is a trade restriction. C) The agreement can be validated with the prior authorization of the court. Question 8. Principle: an agreement limiting trade is not applicable. An agreement whose terms are not secure is inconclusive.

Explanation – Not only did the agreement between A and B prevent A from having a commercial activity, but it was also not known how much amount B had to pay to A, under which option (C) was correct. (C) A cannot demand from B, as the agreement was void due to its uncertainty and limitation of trade. (C) This agreement is valid, but unenforceable after the death of Manus. 3. The contract is defined as an agreement that can be imposed by law, empty section. Explanation – The terms of the agreement are not valid for the reason stated in option (B) itself. . . .