Under the Indian Contract Act, 1872, which statements are correct?
I. Subject to the statutory exceptions, an agreement without consideration is void.
II. Consideration must have some value in the eyes of the law.
III. Consideration must be adequate.

Question

Under the Indian Contract Act, 1872, which statements are correct?

I. Subject to the statutory exceptions, an agreement without consideration is void.

II. Consideration must have some value in the eyes of the law.

III. Consideration must be adequate.

Accepted Answer

B - Statements I and II only. Section 25 gives the general rule that agreements without consideration are void and provides exceptions. Consideration must have legal value. Its economic adequacy is a separate question, and inadequacy alone does not invalidate an agreement where the promisor freely…

Answer

A - Statements I, II and III

Answer

C - Statements I and III only

Answer

D - Statements II and III only

Under the Indian Contract Act, 1872, which statements are correct? I. Subject to the statutory exceptions, an agreement without consideration is void. II. Consideration must have some value in the…

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