Section 25
Section 25
Agreement without consideration void
Unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay debt barred by limitation law ------an agreement made without consideration is void ,unless -----
1.it is expressed in writing and registered under the law for 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.it is a promise to compensate wholy 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 unless
3.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 donar and donee of any gift actually made
Explanation 2
An agreement to which the consent of the promisor 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 promisor was freely given .
Landmark case 1
Natural love and affection
Raj lekhi versus Bhootnath mukerji
Facts ----respondent had given house and monthly expenses to her wife to live seperately.promise was written and registered .it was mentioned that it was done due to family jars .the husband denied to give money.the wife had to file a suit .
Decision ----the document was written due to family jars.so this document was not come under exception of 25(1)
Land mark judgement no.2
Bhiva versus shivram
Facts ---A filed a suit against B to get fifty percent part of land .this case was dismissed.because property was not parental.after this A had given half land to his Brother B by written and registered document and denied again .
Decision ----according court it was decided that this document was written due to natural love and affection .so this case comes under section 25 (1).
2.past voluntary service/past act as request
Lampleh versus Brathwet
Facts ----respondent had requested to plaintiff to safe him for murder case.plaintiff had tried his best to save him and had done good expenses.respondet had promised him to give 100 pond but did not give.
Decision ---the respondent had given money to plaintiff . because if work is done voluntary or at request ..such promise had become past service as a treaty .
Land mark cases 2
Re cases patents stuart versus kaisi
A manager had given his services to run patent .a promise had been given to some salary to give some salary
Decision ---such promise comes under exception of section 25 .
Landmark judgement no.3
D la Beri versus pierson
Facts ---respondent was owner of a newspaper ๐️.he had advertised that free financial advice will be given to readers .in this order a person had invested his money to a person who was insolvent .that person had got loss .he had filed a suit
Decision ----in this case question is arised that sufficient consideration is available .the court decided that sufficient consideration is available in this situation . because this ad increase circulation of newspaper .
Landmark case no.4
Pridemor versus claywort
Facts -----a woman was injured due to carelessness of respondent .here agent of insurance company pressured her to sign documents on a paper in which she will get 331 dollar as compensation.but she had got 2000 dollar .
Decision ---here court had decided that compensation was so low that it was not holding water at touch stone of time .the court considers that contract was right due to low compensation
Illustrations
a.A promises for no consideration to give to B Rs.1000.this is void agreement.
b.A for natural love and affection ,promises to give his son B .rs.1000.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.1000 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 ๐ worth Rs.1000 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.1000/ 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 freely given
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