Site navigation

A agrees to sell a horse worth Rs. 10,000 for Rs. 10. A’s consent to the agreement was freely given.…

Inadequacy of consideration by itself does not make an agreement void if consent is free. Section 25 Explanation 2 and its horse-sale illustration distinguish inadequate…

Choose your answer

A agrees to sell a horse worth Rs. 10,000 for Rs. 10. A’s consent to the agreement was freely given. Under the Indian Contract Act, 1872, the agreement is:

Select one answer
Answer and explanation

Correct answer C

Inadequacy of consideration by itself does not make an agreement void if consent is free. Section 25 Explanation 2 and its horse-sale illustration distinguish inadequate consideration from the absence of consideration. A low price can be evidence relevant to whether consent was free, but the question expressly supplies free consent; the price disparity therefore does not invalidate this sale agreement.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic