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Assuming the other requirements of a contract are met, how does section 25(2) of the Indian Contract Act, 1872 treat a promise to compensate a person who has already voluntarily done something for…

Question and options

Assuming the other requirements of a contract are met, how does section 25(2) of the Indian Contract Act, 1872 treat a promise to compensate a person who has already voluntarily done something for the promisor?

  1. Enforceable only if it is in writing and registered

  2. Void, because a past voluntary act is not consideration

  3. Enforceable, even though there is no fresh consideration

  4. Voidable at the option of the promisor

Answer and explanation

Correct answer: C - Enforceable, even though there is no fresh consideration

Section 25(2) of the Indian Contract Act, 1872 makes an exception to the rule that an agreement without consideration is void: a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor is enforceable. Writing and registration are conditions of the separate exception in section 25(1) for promises made out of natural love and affection, not of this one.

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