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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Ramesh, in Jaipur, promises in a casual conversation to gift Rs. 50,000 to his friend Suresh next month. Nothing is given or promised by Suresh in return, and there is no writing or registration. What is the legal status of Ramesh's promise?

The promise is a void agreement. Section 25 declares an agreement without consideration void unless it falls within the exceptions, such as a registered written promise between near relations. A casual oral promise to a friend meets none of them, so it cannot be enforced.

  1. AIt is a valid contract because the promise is lawful
  2. BIt is a void agreement because it is made without considerationCorrect
  3. CIt is a voidable contract at Suresh's option
  4. DIt is a valid contract because Ramesh and Suresh are friends

Explanation

Under Section 25, an agreement made without consideration is void unless one of the listed exceptions applies. A friendship is not a near relation, and there is no writing, registration or past voluntary service. Calling it voidable is wrong because a voidable contract requires an agreement that is enforceable at one party's option, which is not the case here.

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