Home | ARTS | Business Environment and Law | Exceptions to the Rule of Consideration-Law Of Contract

Business Environment and Law-Law Of Contract (Indian Contract Act 1872)

Exceptions to the Rule of Consideration-Law Of Contract

   Posted On :  07.05.2018 12:30 am

In the following cases the agreement would be enforceable even though they are made without consideration.

Exceptions to the Rule of Consideration
 
(Sec. 25) In the following cases the agreement would be enforceable even though they are made without consideration.
 
(1) Love and affection:
 
An agreement without consideration is enforceable, if
  • it is made out of love and affection;
  • the love and affection is natural because the parties are so related to each other;
  • the agreement is in writing;
  • the agreement is registered under law.
(2) Compensation for voluntary services: “If it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do.”

(3) Promise to pay a time barred debt: If it is a promise, made in writing and signed by the debtor or his agent to pay wholly or in part a debt which is barred by the limitation.

(4) Contract of Agency: Sec. 185 provides “No consideration is necessary to create an agency.”

(5) Gift already Made: (Sec. 25) “Nothing in this Section shall affect the validity, as between the donor and donee, of any gift actually made.”
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
Last 30 days 142 views

OTHER SUGEST TOPIC