Course Content
QB – Business Laws
A promised to pay his son B a sum of Rs 2 lakh if B passes IAS exam in the first attempt. B passes the examination on his first attempt but A failed to pay the amount as promised. B filed a suit for the recovery of the amount, state whether B can recover the amount under the Indian Contract Act, 1872.
 
Solution:

 

No, B cannot recover the amount under the Indian Contract Act, 1872 because this is not a legally enforceable contract.

Reasons:

  1. Lack of Legal Intent – This was a social or moral agreement between a father and son, not a business agreement. The law does not recognize such promises as contracts.
  2. No Consideration from B – A contract requires mutual consideration. Here, B passing the IAS exam is a personal achievement, not a service performed for A.
  3. No Legal Obligation – A promise made out of love and affection, without legal intent, is not enforceable in court.

Legal Reference:

Under Section 10 of the Indian Contract Act, 1872, an agreement must create a legal obligation to be a contract. Since this promise lacks legal enforceability, B cannot claim Rs. 2 lakh from A through a lawsuit.

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