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A promisor freely agrees to a bargain supported by lawful but inadequate consideration. Under the…

Under Explanation 2 to section 25, an agreement made with freely given consent is not void merely because consideration is inadequate. A court may consider the inadequacy as…

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A promisor freely agrees to a bargain supported by lawful but inadequate consideration. Under the Indian Contract Act, 1872, what is the effect of the inadequacy alone?

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Correct answer C

Under Explanation 2 to section 25, an agreement made with freely given consent is not void merely because consideration is inadequate. A court may consider the inadequacy as evidence when deciding whether consent was freely given.

Option feedback

Option A

Explanation 2 to section 25 expressly rejects voidness based only on inadequacy when consent is freely given.

Option B

Inadequacy alone supplies no right to avoid the agreement when consent was freely given.

Option C

Freely given consent and the other requirements for enforceability can support a bargain even when consideration is inadequate.

Option D

The rule on inadequacy imposes no general registration requirement.

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