CMA Foundation · Fundamentals of Business Laws and Business Communication · Consideration and Legality of Object
Which of the following is NOT one of the grounds on which Section 23 treats a consideration or object as unlawful?
Inadequacy of monetary value is not a ground of unlawfulness under Section 23. The listed grounds are: forbidden by law, defeating the provisions of any law, fraud, injury to the person or property of another, and being immoral or opposed to public policy.
- AIt is forbidden by law
- BIt is fraudulent
- CIt involves or implies injury to the person or property of another
- DIt is inadequate in monetary valueCorrect
Explanation
Section 23 lists these grounds: forbidden by law, defeating the provisions of any law, fraudulent, involving injury to the person or property of another, and immoral or opposed to public policy. Inadequacy of consideration is not a ground. Hence the last option is the exception.
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