Skip to content

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

Suresh owes Dinesh Rs. 10,000, but the debt became barred by the law of limitation. Suresh now makes the following promises to Dinesh. Which promise is enforceable under the Indian Contract Act, 1872?

The signed written promise to pay Rs. 4,000 is enforceable. Section 25(3) validates a promise, made in writing and signed by the debtor or his authorised agent, to pay wholly or in part a debt barred by limitation. An oral promise fails, and registration is not required for this exception.

  1. AAn oral promise to pay the full Rs. 10,000
  2. BA written promise, signed by Suresh, to pay Rs. 4,000 towards the debtCorrect
  3. CA written promise, signed by Suresh, to pay Rs. 10,000 but only if registered as a document
  4. DA promise made by Suresh's neighbour orally to pay Rs. 10,000 on his behalf

Explanation

Under Section 25(3), a promise to pay wholly or in part a time-barred debt is a contract if it is made in writing and signed by the person to be charged or his authorised agent. A signed written promise to pay Rs. 4,000 meets this. The oral promise fails for lack of writing. Registration is not required for this exception, and the neighbour has no authority.

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