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

Neha, for natural love and affection, promises in writing to give her sister Pooja Rs. 20,000, but the document is not registered. Pooja sues for the amount. Which statement is correct under the Indian Contract Act, 1872?

The promise is void. For a promise without consideration to be valid on the ground of natural love and affection between near relations, it must be both in writing and registered. Neha's document is unregistered, so the exception does not apply and Pooja cannot enforce it.

  1. AThe promise is enforceable because it is in writing and made out of natural love and affection
  2. BThe promise is void because the exception requires the writing to be registeredCorrect
  3. CThe promise is enforceable because sisters are near relations
  4. DThe promise is voidable at Pooja's option

Explanation

Section 25(1) validates a promise without consideration only if it is expressed in writing and registered, and made on account of natural love and affection between parties in a near relation. Here the writing is not registered, so the exception is not satisfied. Writing alone and the relationship alone are not enough, so the promise remains a void agreement.

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