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'A' owes 'B' Rs. 10,000.00 as debt but the recovery of debt amount is barred by the Limitation Act,…

Under s.25(3) of the Indian Contract Act, 1872, a written and signed promise to pay a time-barred debt is valid despite the absence of fresh consideration, so "The agreement…

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'A' owes 'B' Rs. 10,000.00 as debt but the recovery of debt amount is barred by the Limitation Act, 1963. 'A' voluntarily but without any consideration either having been paid to him or promised to be paid by 'B' signs a written instrument to pay 'B' Rs. 10,000.00 on account of the debt. Which of the following statement is correct:—

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Correct answer B

Under s.25(3) of the Indian Contract Act, 1872, a written and signed promise to pay a time-barred debt is valid despite the absence of fresh consideration, so "The agreement between 'A' and 'B' is a valid contract enforceable in law".

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