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Statement I: An agreement to which the consent of the promisor is freely given is not void merely,…

Under Explanation 2 to s.25, inadequate consideration does not by itself make a freely consented agreement void, but the court may take it into account in deciding whether…

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Statement I: An agreement to which the consent of the promisor is freely given is not void merely, because the consideration is inadequate.
Statement II: Inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given.

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Correct answer A

Under Explanation 2 to s.25, inadequate consideration does not by itself make a freely consented agreement void, but the court may take it into account in deciding whether consent was freely given, so "Both the statements are true".

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