Skip to content

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

Under the Indian Contract Act, 1872, an agreement made without consideration is generally void. Which of the following agreements, made without consideration, is enforceable as a contract?

The written and registered promise by a father to his son out of natural love and affection is enforceable. Section 25(1) requires writing, registration and a near relationship with natural love and affection. The other options lack registration, a near relation, or both, so they remain void.

  1. AA written, registered promise by a father to give his son Rs 50,000 out of natural love and affectionCorrect
  2. BAn oral promise by an uncle to give his nephew Rs 50,000 as a gift
  3. CA written but unregistered promise by a father to give his daughter Rs 50,000 out of natural love and affection
  4. DA promise by a friend to give Rs 50,000 to another friend, made in writing and signed

Explanation

Section 25(1) validates a no-consideration promise only if it is in writing, registered, and made on account of natural love and affection between parties standing in a near relation. The father-son promise meets all three. The unregistered promise to the daughter fails the registration requirement, so it stays void.

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