Agreement Without Consideration Indian Law
Thus, if B was treated during his illness, but refused to accept A`s payment; When FreundeA gratefully promises to pay 1000 us-euro to B`s son D, the agreement between A and D is cancelled for lack of consideration, as it does not fall under this exception. Section 25 of the Contracts Act states: “Agreements without consideration, unless they are written and registered or registered or if it is a promise to compensate something or a promise to pay a prescribed debt.” In this section, according to the definition clause in paragraph 2, point (d), it says that “reflection is the essential part of a valid contract” and an exception to the rule it establishes, and in such exceptions the contract cannot be justified even if it is made without consideration. As a general rule, the performance of an obligation already contractually owed to the promiseholder is not a good consideration. Even with regard to public policy, it is necessary to discourage a tendency to exert undue pressure or threaten to break its contract, unless another party complies by paying or associating with it. The promiseor must find it advantageous to honor the promise immediately, instead of paying for its violation, which might not fully compensate the promiseor. (ii) The agreement is a promise to compensate something – if an agreement is reached to compensate the person who has already done something voluntary for the promisor, it can be done without consideration. Only the promises, supported by the counterparty, are enforceable, because any promise made without commitment is usually very hasty and without any consideration. The reason for considering an essential element of a contract is that it represents a kind of burden on the parties to carry out the contractual terms. For example, if A promises to give b a car without B doing anything or abstaining from voting, the promise is made by an unenforceable. It will be a gift and not a contract in itself. The adequacy of the consideration means that the consideration paid corresponds to the value for which it is paid.