X’ agrees to pay ‘Y’ 50,00,000 Taka if he imports 20,000 pieces Yaba tablets from Myanmar.

It
was a written agreement between them. Accordingly, ‘Y’ and ‘Z’ plans to enter into a contract for
carrying ‘X’s Yaba from Myanmar to Bangladesh by the ship M.V Banglar Maya belonging to
‘Z’, which was than on its way to Cox’s Bazar from Japan. But soon after the ship sets out from
Japanese port, it experiences a very rough sea as it skirts the edges of a storm. ‘P’, the Captain of
the ship does not feel like calling the owner ‘Z’. Rather, he immediately contacts his spiritual
Guru and asks for help, so that the ship can safely reaches the Cox’s Bazar port. He made a gift
of his farmhouse in Teknaf in favour of his Guru while Guru assured him that the ship will reach
safe haven in the port. Unfortunately, unknown to both ‘Y’ and ‘Z’, and to the utmost
disappointment of Captain ‘P’, the ship M. V. Banglar Maya sank in the sea while proceeding
towards Bangladesh. Therefore, ‘Y’ and ‘Z’ finalizes their contract. When the Captain ‘P’ was
rescued by the Naval Coastguard, and he left the hospital after treatment, he informed ‘Z’ about
the incident and also wanted to avoid the contract of gift of his farmhouse already made to his
spiritual Guru. When ‘Y’ gets the information, he wants to claim compensation from ‘Z’ for the
breach of contract. Meanwhile, ‘X’ also wants to sue ‘Y’ for not delivering Yaba as per the
contract. Advise ‘X’, ‘Y’, ‘Z’ and ‘P’.

Answer

A. Issue

Issue 1: ‘X’agrees to pay ‘Y’ 50,00,000 Taka if he imports 20,000 pieces Yaba tablets from
Myanmar.It was a written agreement between them. ‘Y’ fails to fulfill the contract because of
some incident.‘X’ wants to sue ‘Y’ for not delivering Yaba as per the contract. Now, the
question is ‘X’ will be able to sue or not against ‘Y’.

Issue 2: ‘Y’ and ‘Z’ plans to enter into a contract for carrying ‘X’s Yaba.The yaba carrying
ship belongs to ‘Z’. But soon after the ship sets out experiences a very rough sea as it skirts
the edges of a storm. ‘P’, the Captain of the ship does not feel like calling the owner ‘Z’. .
When ‘Y’ gets the information, he wants to claim compensation from ‘Z’ for the breach of
contract.Now,The issue is will ‘Z’ pay the compensation or not.

Issue 3: In the third case ‘Z’ and ‘P’, ‘Z’ is the owner of yaba carrying ship. ‘P’ is the
Captain of the ship. ‘P’does not feel like calling the owner ‘Z’ while the ship sets out
experiences a very rough sea as it skirts the edges of a storm. Rather, he immediately
contacts his spiritual Guru and asks for help, so that the ship can safely reaches the Cox’s
Bazar port.Now , the issue is what step should ‘Z’do about ‘P’.

Issue 4: ‘P’made a gift of his farmhouse in Teknaf in favour of his Guru while Guru assured
him that the ship will reach safe haven in the port.But ‘P’ wanted to avoid the contract of gift
of his farmhouse already made to his spiritual Guru. Now the fact is, whether it is possible
for P to avoid the contract of gift.
B. Laws:

According to section 23 and 24 we get that the consideration or object of an agreement is

lawful, unless- it is forbidden by law and if any part of a single consideration for one or more
objects, or any one or any part of any one of several considerations for a single object is
unlawful, the agreement is void. As the contract between X and Y, Y and Z is made on the
basis of unlawful consideration so their agreement is void according to section (23 & 24).

Verbal agreements are contracts that have been agreed by spoken communication. So
according to this definition we can say that between Z and P there is a verbal agreement. On
the other hand P cannot void the contract of gift he actually made because it is an executed
contract.

C. Application:

As Consideration is an essential element of contract, without it there cannot be a contract. No

consideration no contract. Here, X and Y made written agreement on the basis of unlawful
consideration. X offered Y to imports 20,000 pieces Yaba Tablets from Myanmar. So,
according to Section 23 and 24, consideration must be lawful, so here carrying Yaba Tablets
is unlawful consideration, so the agreement is void as per contract law 1872. On the other
hand, Y and Z agreed to bring X’s Yaba Tablets through Z’s Ship M.V Banglar Maya, which
is also unlawful consideration according to contract law. In case of Z and P, P will be
responsible to Z who is the owner of the ship not informing his properly at the right time.

If you make any agreement without consideration, law has declared that void, unless, there
are certain exceptions to this general rules. There are four situations when contract is valid
without consideration. According to sub section, 1,2,3, and explanation 1. As per explanation
1, when a gift is actually made, gift itself implies that it is voluntarily given without
expecting anything in return. So, P made a gift to his guru G, which is an executed contract.
Even though there is no consideration here, but it is treated as a valid contract. Because it is
actually made.

D. Conclusion

So, I will suggest X not sue Y as it was an unlawful consideration and here the agreement
become void due to its unlawful consideration. Void agreement itself implies that it is not
enforceable by law and void from the beginning. Similarly, I will suggest Y not to claim any
compensation from Z as he also made same type of unlawful agreement. I would like to
suggest Z, he cannot avoid the contract of gift of his farmhouse already made to his spiritual
Guru G because it was an executed contract and this type of contract does not need any
consideration because gift made actually itself voluntary. Finally I will suggest P regret Z for
not informing his at the right time.