Site navigation

Which of these agreements is void under Sections 25 to 27 of the Indian Contract Act, 1872?

Question and options

Which of these agreements is void under Sections 25 to 27 of the Indian Contract Act, 1872?

  1. A written promise, signed by the debtor, to pay a time-barred debt

  2. A seller's promise not to compete within reasonable limits on selling goodwill

  3. A written, registered promise made out of love and affection to a near relative

  4. An oral promise to pay money to a stranger for no consideration

Answer and explanation

Correct answer: D - An oral promise to pay money to a stranger for no consideration

Section 25 of the Indian Contract Act, 1872 makes an agreement without consideration void, unless it falls within an exception. A written and registered promise made out of natural love and affection to a near relative (Section 25(1)) and a written, signed promise to pay a time-barred debt (Section 25(3)) are exceptions, and the seller of goodwill is saved by the exception to Section 27.

Practice for these exams

Related exam syllabi

More solved explanations in Lawful object & void agreements