Frank James is a foreign national and businessman. He approached Rampa, an accountant and civil servant at the Registrar General Department for assistance to establish a factory. Rampa was ready to help if Frank James offered him 20% of the yearly profit from the business. Subsequently, Frank James and Rampa signed a written agreement for Rampa to have 20% of yearly profit from the business. Frank James paid the 20% for the first two years. In the third and fourth years, Frank James failed to pay the agreed 20% on profit. Rampa insists on enforcing the agreement.

Required: Advise Rampa on the chances of success of his claim. (5 marks)

 

The case falls in the area of contract to use official position or public office to secure private reward. In the present scenario, the conduct of Rampa was injurious to the public interest as his expectation of private financial gains was bound to conflict with his official duties. The contract was illegal and unenforceable on the grounds of public policy. (5 marks)