| Principle Contract is an agreement freely entered into between the parties. |
| Facts Raju was a dealer of cement. The Government of India, by an order issued under the Essential Commodities Act, fixed the price of cement and also the quantity, which a person can buy from the dealer. Raju carried on his business under this new order for sometime but he refused to pay sales tax on his sale transactions on the ground that these were not the contracts freely entered into by him |
A) Raju would succeed because free consent between the parties was there, despite the restriction on price and quantity
B) Raju would not succeed because free consent between the parties was there, despite the restriction on price and quantity
C) Raju would succeed because the government under the new order forced him to enter into contracts
D) None of the above
Correct Answer: B
Solution :
Raju would not succeed. The reason is that free consent between the parties was there despite the restriction on the price and quantity.
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