shonith (Law Officer) 25 June 2009
Whether an agreement between a Manufacturer and a Distributor is valid,
if the said document contains only mutual rights and obligations to be
performed by both parties and also it ldoes not contain any monetary
consideration from one party to another.
Whether monetory consideration is necessary or any other
non-monitory consideration is enough for an agreement ot be valid?
N.K.Assumi (Advocate) 25 June 2009
See sec 25 of the Indian Contract Act. An agreement without consideration is void.
Swami Sadashiva Brahmendra Sar (Nil) 25 June 2009
Mr Assumi is right. However, Monetary consideration is not necessary. S 2 (d) defines consideration as doing something or abstaining from doing something at the desire of other party.
shonith (Law Officer) 26 June 2009
Dear All,
Thanks for the timely advice
Regards
Shonith P S
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