Skip to content

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

Sunita, out of natural love and affection, promises in a registered written document to give her nephew Rohan Rs. 20,000. Rohan is not her near relation by law in any sense relevant here; he is merely the son of a family friend whom she calls her nephew. Which view is correct under Section 25?

The agreement is void. Section 25(1) validates a promise without consideration only if it is in writing, registered, made for natural love and affection, and between parties in a near relation. Writing and registration alone are insufficient, and Sunita and Rohan are not near relations.

  1. AEnforceable, since the promise is written and registered
  2. BEnforceable, since love and affection is lawful consideration
  3. CVoidable at Sunita's option, since consent was not free
  4. DVoid, since the parties do not stand in a near relation to each otherCorrect

Explanation

Section 25(1) saves a no-consideration promise only if it is written, registered, made on account of natural love and affection, and between parties standing in a near relation. Rohan is only a family friend's son, so the near-relation condition fails. Writing and registration alone are not enough, so the agreement is void under Section 25.

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