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Consider the following statements and point out which of them is correct: 1. An agreement made without…

Statements 1 and 2 express the ordinary consideration rule: a promise generally requires consideration recognized by law. Statement 1 is subject to section 25's express…

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Consider the following statements and point out which of them is correct:
1. An agreement made without consideration is void.
2. Consideration should have value in the eye of law.
3. Consideration has to be adequate.

Select one answer
Answer and explanation

Correct answer B

Statements 1 and 2 express the ordinary consideration rule: a promise generally requires consideration recognized by law. Statement 1 is subject to section 25's express exceptions and its saving for completed gifts. Statement 3 is false because consideration need not be economically adequate; Explanation 2 preserves agreements freely consented to despite inadequate consideration. Consequently the combination 1 and 2 is the conventional statutory answer, rather than including statement 3.

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