"No consideration,No contract" Explain with exception.
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Answer / sebastian
Exceptions to the rule that “No consideration – No contract”
Section 25 declares that `an agreement made without
consideration is void'. It means that consideration is a
must in all cases. Exceptions to the rule are:
• written and registered agreement out of natural
love and affection between the parties;
• promise to compensate a person who has voluntarily
done something for the promisor;
• promise to pay time-barred debt;
• completed gift;
• creation of agency
| Is This Answer Correct ? | 239 Yes | 30 No |
Answer / avinash verma
Consideration:-
Consideration for a particular promise exists where some
right, interest, profit or benefit accrues (or will accrue)
to the promisor as a direct result of some forbearance,
detriment, loss or responsibility that has been given,
suffered or undertaken by the promisee. The consideration
must be executory or executed, but not past. Consideration
is executoryConsideration can be anything of value (such as
an item or service), which each party to a legally-binding
contract must agree to exchange if the contract is to be
valid. If only one party offers consideration, the
agreement is not legally a binding contract. In its
traditional form, consideration is expressed as the
requirement that in order for parties to be able to enforce
a promise, they must have given something for it (quid pro
quo): something must be given or promised in exchange or
return for the promise.
contract:-
A contract is an exchange of promises between two or more
parties to do or refrain from doing an act which is
enforceable in a court of law. It is where an unqualified
offer meets a qualified acceptance and the parties reach
Consensus In Idem. The parties must have the necessary
capacity to contract and the contract must not be either
trifling, indeterminate, impossible or illegal.
Hence by watching both definitions you can understand that
contract required benefit for both parties. if there is no
consideration for one party it means that party is not
getting any benefit so. If there is no benefit for both
party it means why they will make contract. And if benefit
is only for one party then that is no contract because it
is not full feeling contract first essential of exchange of
promises, goods, services or something worth full for both
parties
| Is This Answer Correct ? | 150 Yes | 59 No |
Answer / sanjana thakur
Following are the exceptions to no consideration no contract:-
1.) Agreements made on account of natural love and affection provided these conditions are fulfilled;
i) agreement should be in writing
ii)must be registered under law
iii)must be on account of natural love and affection
iv) the contracting parties must be standing in near and legal relations to each other.
2.) Promise to compensate past voluntary service
The past voluntary service is assumed to be past consideration.
3.) Promise to pay a time barred debt is valid if:-
i) If the debtor promises in written.
ii) If the original debt is legal
4.) Contracts of agency
The principle shall be liable for the acts of the agent even though no consideration proceeds from the agent
5.) Gifts already made
6.) Promises to contribute to charity
7.) Remission(it means lesser performance in place of whole performance)
8.) Contracts of gratuitous bailment
If no consideration is involved in bailment it is said gratuitous bailments, it is valid and enforceable.
9.) Doctrine of 'Privity of Contract'
No other person except the contracting parties has the right to enforce the contract.
10.) Acknowledgement
If a person acknowledges to another as his agent then he can be held liable by the party.
11.) Assignment of a contract
It means transfer of rights and obligations arising under a contract in favour of a third person
12.) Conditions running with the land
If certain covenants run with the land then these shall be applicable even on subsequent parties who acquire interest on this land even though they are not originally party to the contract under which covenants were set up
13.) Contracts made for minor's marriage
Such contracts created by the guardians treat minor as a beneficiary to the contract
| Is This Answer Correct ? | 83 Yes | 9 No |
Answer / sabastian tharakan george lion
Exceptions to the rule that “No consideration – No contract”
Section 25 declares that `an agreement made without
consideration is void'. It means that consideration is a
must in all cases. Exceptions to the rule are:
• written and registered agreement out of natural
love and affection between the parties;
• promise to compensate a person who has voluntarily
done something for the promisor;
• promise to pay time-barred debt;
• completed gift;
• creation of agency
| Is This Answer Correct ? | 60 Yes | 16 No |
Answer / anil trapasiya
Section 25 declares that `an agreement made without
consideration is void'. It means that consideration is a
must in all cases. Exceptions to the rule are: •
written and registered agreement out of natural
love and affection between the parties; • promise to
compensate a person who has voluntarily done something for
the promisor;• promise to pay time-barred debt;•
completed gift; • creation of agency
| Is This Answer Correct ? | 53 Yes | 16 No |
Answer / shahid iqbal
"consideration"
" 'consideration is the price for which the promise of the another is bought'"
"contract"
" every agreement and promise enforceable at law is contract"
"(so why no consideration no contract)"
according to contract act every promise or every set of promise forming the consideration for each other is an agreement.so, there can't be an agreement without consideration and there can't be a contract without agreement.
section "10" of the contract act say's that all agreement are contract if they are made with the free consent of the parties competent to contract for a lawful consideration and with lawful objects.
therefore(sec:25)
"an agreement with out consideration is void."
| Is This Answer Correct ? | 43 Yes | 11 No |
Answer / natasha
A promise without consideration cannot create a legal obligation. The general rule is that an agreement made without consideration is void. This rule is contained in Section 25 of the Indian Contract Act, which declares that ‘an agreement made without consideration is void’. This means that consideration is a must in all the cases. But this Section provides certain exceptions where an agreement is valid even without consideration. These cases are :
For answer in detail please visit to follow link : https://www.owlgen.com/question/no-consideration-no-contract-explain-this-rule-with-exceptions
| Is This Answer Correct ? | 1 Yes | 0 No |
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