Bhuvika borrowed - 4,75,000/- from her relative Madan on 5 th April, 2020 on interest @1% per month for 5 year for running her Cosmetics store. She…

(i) Promise to pay Time Barred Debt: Where a promise in writing signed by the person making it or by his authorized agent, is made to pay a debt barred by limitation, it is valid without consideration [Section 25 (3) of the Indian Contract Act,1872]. Thus, in terms of the provisions of Section 25 (3) of the Act, Madan can legally recover the debts with interest from Bhuvika since she had promised in writing to pay the outstanding amount shortly within a few months even though the loan has already been time barred. (ii) Completed gift: According to Section 25 of the Indian Contract Act,1872 an agreement made without consideration is void. Further explanation1to Section25states that nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made. In case of completed gifts, the rule of no consideration no gift does not apply. Thus, gifts do not require any consideration. In the instant case, the gift of i-Phone from Abeer to Chhaya has already been done, which amounts to ‘Completed Gift’ and is covered by explanation1to Section 25. Hence, gift given by Abeer to Chhaya is valid. (iii) According to Section 25 of the Indian Contract Act,1872, an agreement made without consideration is void, subject to certain exceptions. One important exception is: An agreement made out of natural love and affection between parties standing in a near relation to each other is valid, provided it is in writing and registered. Position when Amol and Chakori are Friends: Since the Amol and Chakori are merely friends (and not near relatives) and do not come within the purview of Section 25 (1) . The promise to give a gold ring is mere promise and not supported by consideration. Hence the promise made by Amol is not legally enforceable. Position when Amol and Chakori are Husband & Wife: In this position the parties are in near relation and Amol promised out of natural love and affection to gift her wife a gold ring. This can be legally enforceable provided the promise is in writing and registered under the law. In other words, this can be legally enforceable provided the promise is in writing and registered under the law as Amol and Chakori are in near relation and Amol promised out of natural love and affection to gift her wife which comes within the purview of Section 25 (1) of the Indian Contract Act,1872.