The general rule is
that an agreement made without consideration is void (Section 25). In ever
valid contract consideration is very important. A contract may only be
enforceable when a adequate consideration is there. However, the Indian
Contract Act contains certain exception to this rule. In the following cases,
the agreement though made without consideration, will be valid and enforceable.
1.
Natural
Love and Affection: A written and registered agreement
based on natural love and affection between the parties standing in near
relation (e.g., husband and wife) t each other is enforceable even without
consideration.
2. Compensation
for past voluntary services: A promise to compensate, wholly
or in part a person, who has already voluntarily done something for the
promisor, is enforceable under (Sec. 25(2). In order that a promise to pay for
the past voluntary services is binding the following essential factors must
exist :
(i) The services should have been rendered
voluntarily.
(ii) The services have been rendered for the
promisor.
(iii) The promisor to be in existence at the time
when services were rendered.
(iv) The promisor must have intended to compensate
the promisee.
3. Promise
to pay time barred debt : 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)].
4. Agency:
According to Section 185 of the Indian Contract Act, no consideration is
necessary to create an agency.
5. Completed
gift: In case of completed gifts, the rule no
consideration no contract does not apply. Explanation (1) to Section 25 states
"nothing in this section shall affect the validity as between the donor
and donee, of any gift actually made." Thus, gifts do not require any
consideration.
Courtesy:- Legal Point
Foundation
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