A lends rupees one lakh to B and B promises to repay it with interest @ 12% per annum after one year. The agreement also provides that if the amount is repaid within six months, the rate of interest will be 10%. The stipulation is:

Correct option is A

A conditional agreement that alters the rate of interest based on early repayment is valid under the Indian Contract Act, provided both parties agree.
Information Booster:
This stipulation provides for a reduced interest rate if the loan is repaid early, which is allowed as long as it doesn’t involve coercion or fraud.
Additional Information:
· Option (b), (c), and (d): Such conditions do not make the contract void, voidable, or illegal, as long as they are agreed upon mutually.