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CMA Foundation · Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Mohan, out of natural love and affection, promises in writing to give his daughter Kavita Rs. 50,000. Which additional requirement must be met for the promise to be enforceable despite the absence of consideration?

The promise must be registered. Section 25(1) makes a promise without consideration enforceable if it is in writing, registered under the law for registration of documents, and made on account of natural love and affection between parties in a near relation. Writing without registration leaves the promise void.

  1. AThe promise must be registered under the law for registration of documentsCorrect
  2. BThe promise must be witnessed by two persons
  3. CKavita must give a token amount in return
  4. DThe promise must be made before a Magistrate

Explanation

Section 25(1) requires that the agreement be expressed in writing and registered under the law in force for registration of documents. It must also be made on account of natural love and affection between parties standing in a near relation. Writing alone is not enough, so the other options add requirements the section does not state.

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