Skip to content

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

Ravi's lost wallet was found and returned to him by Sunil, who acted voluntarily and without being asked. Later, Ravi promised in conversation to pay Sunil Rs 500 for this kindness. Sunil now sues for the Rs 500. What is the legal position under the Indian Contract Act, 1872?

Ravi's promise is enforceable. Section 25(2) treats a promise to compensate someone who has already voluntarily done something for the promisor as a contract, even without fresh consideration. Sunil's voluntary return of the wallet qualifies, and no registration is needed for this exception.

  1. ARavi's promise is void because Sunil gave no consideration at Ravi's request
  2. BRavi's promise is enforceable because it compensates a person who has already voluntarily done something for the promisorCorrect
  3. CRavi's promise is enforceable only if it is registered
  4. DRavi's promise is voidable at Ravi's option

Explanation

Section 25(2) makes a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor a contract. Sunil returned the wallet voluntarily, so Ravi's promise is enforceable. The writing and registration requirement applies to the love-and-affection exception, not this one.

Did you get it right without looking?

One question tells you little. A timed set on Void and Voidable Agreements, No Consideration No Contract shows your real accuracy, how long you take and where you lose marks.

Practise Void and Voidable Agreements, No Consideration No ContractFree diagnostic mock

More Void and Voidable Agreements, No Consideration No Contract questions