What are the conditions need to be fulfilled to make the following agreements valid without consideration as per the provisions of the Indian…
CA Foundation · Business Laws · PYQS · September 2024
What are the conditions need to be fulfilled to make the following agreements valid without consideration as per the provisions of the Indian Contract Act, 1872? (A) Agreement made based on natural love and affection (B) Promise to pay time-barred debts
Suggested Answer and Working Notes:
(A) Agreement made based on natural love and affection: Conditions to be fulfilled under section 25 (1) of the Indian Contract Act,1872 (i) It must be made out of natural love and affection between the parties. (ii) Parties must stand in near relationship to each other. (iii) It must be in writing. (iv) It must also be registered under the law. A written and registered agreement based on natural love and affection between the parties standing in near relation (e.g., husband and wife) to each other is enforceable even without consideration. (B) Promise to pay time barred debts: Where a promise in writing signed by the person making it or by his authorised agent, is made to pay a debt barred by limitation it is valid without consideration [Section 25 (3) ].
Topics: The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872
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