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

Ramesh, out of natural love and affection, promises in writing to give his daughter Meera Rs. 50,000. The promise is not registered. Meera sues to enforce it. What is the position?

The promise is not enforceable. Under Section 25(1), a promise made out of natural love and affection between near relations must be both in writing and registered. Since this promise was not registered, the exception does not apply and the agreement remains void for lack of consideration.

  1. AEnforceable, because the parties are in a near relation
  2. BEnforceable, because the promise is in writing
  3. CNot enforceable, because the promise is not registeredCorrect
  4. DEnforceable only if Meera is a minor

Explanation

Section 25(1) requires the promise to be in writing and registered, and made on account of natural love and affection between parties in a near relation. Here the promise is written but unregistered, so the exception is not met and the agreement is void for want of consideration. Writing alone, or relationship alone, is not enough.

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