Question:

Principle: A contract which is duly supported by real and lawful consideration is valid notwithstanding that the consideration is inadequate. The court may consider inadequacy only to determine whether consent was freely given. Facts: 'A' sells a mobile phone worth Rs. 20,000 to 'B' for Rs. 10.

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The court does not assess the fairness of consideration, only its lawfulness and whether consent was free.
Updated On: Aug 11, 2025
  • There is a contract between 'A' and 'B'
  • There is no contract between 'A' and 'B' because consideration is not adequate
  • There is no contract between 'A' and 'B' because a mobile phone worth Rs. 20,000 cannot be sold for just Rs. 10
  • None of the above
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The Correct Option is A

Solution and Explanation

Inadequacy of consideration alone does not invalidate a contract if consideration is lawful and consent is free. The law leaves the valuation of consideration to the parties involved.
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