Question

Which of the following statements is not true?

• A. An agreement by way of wager is void and no suit shall be brought for recovering anything alleged to be won on any wager.
• B. When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promisor.
• C. The performance of any promise may be made in any manner, or at any time which the promisee prescribes or sanctions.
• D. When a contract becomes void, any person who has received any advantage under such contract is not bound to restore it.

Hint:

Section 65 of the Contract Act is based on fairness. It says you can't keep a benefit you received from a contract that has become void; you must give it back.

Answer 1

The Correct Option is D

Let's analyze each statement based on the Indian Contract Act, 1872.

(A) is true.
This is the essence of Section 30, which deals with wagering agreements.

(B) is true.
This is the principle laid down in Section 41 regarding the effect of accepting performance from a third party.

(C) is true.
This is the rule stated in Section 50 regarding the manner and time of performance.

(D) is false.
This statement is directly contradicted by Section 65, which establishes the principle of restitution.
Section 65 states that when a contract becomes void, any person who has received any advantage under it is bound to restore it, or make compensation for it, to the person from whom he received it.
Therefore, the statement that is not true is (D).