Question

Abhay promises, for no consideration, to give to Boban Rs.1,000. What is the nature of this agreement under the provisions of the Indian Contract Act, 1872?

• A. This is a void agreement.
• B. This is a valid agreement.
• C. This is an illegal agreement.
• D. This agreement is epistemic.

Hint:

A completed gift does not require consideration to be valid.
However, an agreement to give a gift in the future (a mere promise) is void unless it meets the exceptions of Section 25.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks to determine the legal validity of a promise made by one person to another without any consideration in return.

Step 2: Key Legal Principles and Approach:
The rule governing agreements without consideration is laid down in Section 25 of the Indian Contract Act, 1872.
We must evaluate if the given facts meet the requirement of consideration or fall under any statutory exceptions.

Step 3: Detailed Explanation:

• Rule of Consideration: Section 25 of the Indian Contract Act, 1872, codifies the common law maxim ex nudo pacto non oritur actio (no action arises from a bare promise).

• The section starts with the clear rule: "An agreement made without consideration is void..."

• Exceptions to the Rule: Section 25 lists three specific exceptions where an agreement without consideration is valid:

• (1) It is expressed in writing and registered, and made on account of natural love and affection between parties standing in near relation.

• (2) It is a promise to compensate a person who has already voluntarily done something for the promisor.

• (3) It is a promise, in writing and signed, to pay a debt barred by limitation.

• Applying to the Facts: Abhay's promise to give Boban Rs. 1,000 is purely gratuitous and has no consideration.

• There is no indication of any natural love and affection, past voluntary service, or time-barred debt that is written and registered.

• Since none of the exceptions apply, the general rule of Section 25 governs the transaction, making the agreement void.

• Therefore, Option (A) is correct.

Step 4: Final Answer:
An agreement made without consideration is void under Section 25, making Option (A) the correct answer.