Section 25 - Agreement void, if made without consideration : Indian Contract Act
Is Agreement void, if made without consideration? Section 25 of Indian Contract Act
Section 25 of Indian Contract Act 1872 : "Agreement void, if
made without consideration"
25. An agreement made without consideration is
(1) Agreement without consideration, void, unless it is in
writing and registered.-It is expressed in writing and
registered under the law for the time being in force for the
registration of documents, and is made on account of natural
love and affection between parties standing in a near relation
to each other; or unless.
(2) Or is a promise to compensate for something done.-It is a
promise to compensate, wholly or in part, a person who has
already voluntarily done something for the promisor, or
something which the promisor was legally compellable to do; or
(3) Or is a promise to pay a debt barred by limitation
law.-It is a promise, made in writing and signed by the person
to be charged therewith, or by his agent generally or specially
authorized in that behalf, to pay wholly or in part a debt of
which the creditor might have enforced payment but for the law
for the limitation of suits.
In any of these cases, such an agreement is a contract.
Explanation 1.-Nothing in this section shall affect the
validity, as between the donor and donee, of any gift actually
Explanation 2.-An agreement to which the consent of the
promiser is freely given is not void merely because the
consideration is inadequate; but the inadequacy of the
consideration may be taken into account by the Court in
determining the question whether the consent of the promiser was
(a) A promises, for no consideration, to give to B Rs. 1,000.
This is a void agreement.
(b) A, for natural love and affection, promises to give his
son, B, Rs. 1,000. A puts his promise to B into writing and
registers it. This is a contract.
(c) A finds B's purse and gives it to him. B promises to give
A Rs. 50. This is a contract.
(d) A supports B's infant son. B promises to pay
A's expenses in so doing. This is a contract.
(e) A owes B Rs. 1,000, but the debt is barred by the
Limitation Act. A signs a written promise to pay B Rs. 500 on
account of the debt. This is a contract.
(f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A's
consent to the agreement was freely given. The agreement is a
contract notwithstanding the inadequacy of the consideration.
(g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A
denies that his consent to the agreement was freely given. The
inadequacy of the consideration is a fact which the Court should
take into account in considering whether or not A's consent was