Question

A contract will still be a valid contract if it is:

• A. Opposed to public policy
• B. In restraint of marriage
• C. A wager
• D. Without adequate consideration

Hint:

In contract law, the rule is: "Consideration must be real, but it need not be adequate." As long as the consent is free, the law will not step in to renegotiate a bad business bargain for either party.

Answer 1

The Correct Option is D

Concept: Section 10 of the Indian Contract Act, 1872 lists the essential elements required to form a valid, legally enforceable contract. These include free consent, competent parties, lawful consideration, and a lawful object. The Act also explicitly designates certain categories of agreements as void.

Step 1: Evaluating the options against statutory bars.
Let us analyze each option based on the relevant provisions of the Indian Contract Act:

• (A) Opposed to public policy: Under Section 23, an agreement whose object or consideration is opposed to public policy is unlawful and completely void.

• (B) In restraint of marriage: Under Section 26, every agreement in restraint of the marriage of any person, other than a minor, is explicitly declared void.

• (C) A wager: Under Section 30, agreements by way of wager are explicitly declared void, meaning no suit can be brought to recover anything alleged to be won on any wager.

Step 2: Analyzing Option (D) regarding adequacy of consideration.
Section 25 of the Act states that an agreement made without consideration is generally void. However, Explanation 2 to Section 25 explicitly states: > "An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given." This means that the law requires the *presence* of consideration (something in return), but it leaves the valuation or adequacy of that consideration entirely up to the contracting parties. If a person voluntarily agrees to sell a luxury car worth lakhs for just one thousand rupees without any coercion, fraud, or undue influence, the contract remains perfectly valid.