18 April 2008
The Indian Contract Act, 1872 ensures the Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a
promise to pay a debt barred by limitation law.
I am reproducing here the entire texture of Section 25 for your perusal:
"Agreement without consideration, void, uncles it is in writing
and registered, or is a promise to compensate for something done, or
is a promise to pay a debt barred by limitation law.-An agreement made
without 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
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 promisor
is freely given is not void merely because the consideration is inade-
quate ; but the inadequacy of the consideration may be taken into
account by the Court in determining the question whether the consent
of the promisor was freely given.
(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 A
Rs. 50. This is a contract.
(d) A supports B's infant son. B promises to pay A's expenses
in so doing. This is a contract.
(e) A owes B Rs. 1,000, but the debt is barred by the Limitation
Act. A signs a written promise to pay B Rs. 500 on account of the
debt. This is a contract.
(f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A's
consent to the agreement was freely given. The agreement is a
contract notwithstanding the inadequacy of the consideration.
(g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A
denies that his consent to the agreement was freely given.
The inadequacy of the consideration is a fact which the Court
should take into account in considering whether or not A's consent was