Yes, paid links are allowed. HTML 4.01 Specification: Links [w3.org]. So long as the link code follows the specification, it is allowed.

Sorry I mean does Google Adsense allow for paid links.

A simple link on a page like this

<p><a target="_blank" href="http://www.blabla.com">Bla Bla</font></a></p>

You need to read the terms of service yourself; but so far as I know the sale of other adverts on a page is permitted provided that they are not contextual.

The adsense team doesn't care whether other links on your pages are paid or not - their only restriction is that it not look deceptively like adsense ads.
The google spam team, however, does care and if they notice paid links which aren't flagged with a nofollow on your pages (or otherwise made non-machine readable, eg javascript) then they will remove you from the organic results.
But adsense? Nah...

Ahem....

See:

[mattcutts.com...]

[google.com...]

Edge - neither of them relate to Adsense, or to the HTML specification.

Edge - neither of them relate to Adsense, or to the HTML specification.

It's related to ghe Google specification.

And so it's direct related to AdSense, because when Google stops the search traffic, the AdSense revenues go down.

The question was:

Are Paid Links Allowed or Not?

and nothing more...

Sounds like a question for the Google News Forum and/or the Advertising Sales & Affiliate Programs Forum.

Looks like an AdSense question to me.

Sorry I mean does Google Adsense allow for paid links.

I think Vince is probably pretty close here....

You need to read the terms of service yourself; but so far as I know the sale of other adverts on a page is permitted provided that they are not contextual.

To clarify:

You are allowed to sell links, as far as this links are marked for Google.

<a href=http://www.example.com ref=nofollow>The best online casino</a>

So no PR is transferred by this action, only visitors.