The inadequacy of consideration will be taken into account by a court of law:
Under Explanation 2 to section 25 of the Indian Contract Act, an agreement freely consented to is not void merely because consideration is inadequate. The disparity may…
Choose your answer
The inadequacy of consideration will be taken into account by a court of law:
Answer and explanation
Correct answer C
Under Explanation 2 to section 25 of the Indian Contract Act, an agreement freely consented to is not void merely because consideration is inadequate. The disparity may nevertheless help the court decide whether consent was freely given, including where fraud, coercion or undue influence is alleged. A wish for a better bargain or mere performance does not establish that defect, and inadequacy is not an unrestricted ground for judicial interference.
Practice for these exams
-
UGC NET Law
See pack details on LawMint.net -
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
Punjab Judicial Services
-
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Supreme Court Law Clerk and Research Associate
Subject revision
-
Bihar Judicial Services
Subject revision
-
Uttarakhand Judicial Services
Subject revision