Indian Contract Act,1872
Act No : 9
Section : Agreement without consideration, void, uncles it is in writingand registered, or is a promise to compensate for something done, oris a promise to pay a debt barred by limitation law
25.Agreement without consideration, void, uncles it is in writingand registered, or is a promise to compensate for something done, oris a promise to pay a debt barred by limitation law.-An agreement madewithout consideration is void, unless- (1) it is expressed in writing and registered under the law for the time being in force for the registration of 1*[documents], and is made on account of natural love and affection between parties standing in a, near relation to each other ; or unless (2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do ; or unless (3) it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1.-Nothing in this section shall affect the validity,as between the donor and donee, of any gift actually made. Explanation 2.-An agreement to which the consent of the promisoris freely given is not void merely because the consideration is inade-quate ; but the inadequacy of the consideration may be taken intoaccount by the Court in determining the question whether the consentof the promisor was freely given.--------------------------------------------------------------------- 1 Subs. by Act 12 of 1891 for "assurances".---------------------------------------------------------------------30 Illustrations (a) A promises, for no consideration, to give to B Rs. 1,000.This is a void agreement. (b) A, for natural love and affection, promises to give his son,B, Rs. 1,000. A puts his promise to B into writing and registers it.This is a contract. (c) A finds B's purse and gives it to him. B promises to give ARs. 50. This is a contract. (d) A supports B's infant son. B promises to pay A's expensesin so doing. This is a contract. (e) A owes B Rs. 1,000, but the debt is barred by the LimitationAct. A signs a written promise to pay B Rs. 500 on account of thedebt. This is a contract. (f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A'sconsent to the agreement was freely given. The agreement is acontract notwithstanding the inadequacy of the consideration. (g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. Adenies that his consent to the agreement was freely given. The inadequacy of the consideration is a fact which the Courtshould take into account in considering whether or not A's consent wasfreely given.
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