Examine the validity of the following agreements under the provisions of the Indian Contract Act, 1872 and justify your answer: (i) Mrs. Deepika…

(i) Under Section 10 of the Indian Contract Act, 1872, a valid contract requires free consent, lawful consideration, and a lawful object. In the instant case, the agreement to pay - 20,000 in exchange for a service (providing information about prospective grooms) is lawful. Hence, the agreement is valid. (ii) According to section 20, where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, there is a bilateral mistake. In such a case, the agreement is void. In the instant case, the horse 's death (unknown to both parties) constitutes a bilateral mistake regarding the subject matter of the contract. Hence, the agreement is void. (iii) Under Section 27, agreements in restraint of trade are void. However, an exception is provided for contracts involving the sale of goodwill. The local limits within which the seller of the goodwill agrees not to carry on similar business must be reasonable. In the instant case, the restriction is limited to the local area and does not extend indefinitely. Hence, the agreement is valid. (iv) According to section 12, a contract by a person who is not of sound mind is void. In the instant case, a property worth - 20,00,000 was agreed to be sold for just - 2,50,000 by a person of unsound mind. Hence, the agreement is void.