Question

As a general rule, an agreement made without consideration is _________:

• A. Void;
• B. Voidable;
• C. Valid;
• D. Unlawful;

Hint:

As per Section 25, a contract without consideration is void unless it falls under specific statutory exceptions.

Answer 1

The Correct Option is A

Step 1: Principle of Consideration under the Indian Contract Act:
Section 25 of the Indian Contract Act, 1872, lays down that an agreement made without consideration is void. Consideration is one of the essential elements of a valid contract and refers to something of value exchanged between parties.
Step 2: Exceptions to the Rule:
Although the general rule declares such agreements void, there are exceptions under Section 25:
1. Agreements made on account of natural love and affection between near relatives if expressed in writing and registered.
2. Promises to compensate for past voluntary acts.
3. Promises to pay a time-barred debt.
Step 3: Analysis of Options:
- (A) Void – Correct, as this is the general rule.
- (B) Voidable – Incorrect, as voidable contracts are those valid until rescinded by one party.
- (C) Valid – Incorrect, unless it falls under the exceptions.
- (D) Unlawful – Incorrect, as such contracts are not unlawful but simply unenforceable.
Step 4: Final Conclusion:
Hence, the correct answer is (A) Void, since consideration is the foundation of enforceability in contract law.