Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- andldquo;Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation lawandrdquo;. This section after defining consideration in definition clause in Sec. 2(d) declares that andldquo;consideration is the vital part of a valid contractandrdquo; and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer?

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Directions: Kindly read the passage carefully and answer the questions given beside.

Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.

Q. ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?

a)
The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.
b)
The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.
c)
The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.
d)
The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.

Correct answer is option 'D'. Can you explain this answer?

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Directions: Kindly read the passage carefully and answer the questions...

The contract between ABC Ltd. and XYZ Ltd. remains valid because it involves the exchange of valuable raw materials, which constitutes valid consideration. Section 25 of the Contract Act stipulates that contracts lacking consideration are void, but it does not render contracts void based solely on the inadequacy of consideration. While the court may assess the adequacy of consideration to determine the voluntariness of consent, the contract remains valid as long as some consideration exists. In this instance, the supply of raw materials qualifies as valuable consideration, and thus, the contract is not void.

Option A is incorrect as the contract falls under the exception outlined in Section 25 of the Contract Act, which allows for valuable consideration like the supply of raw materials. Option B is also incorrect because the contract is not void due to inadequate consideration. It involves valuable consideration, and although the court may evaluate the adequacy of consideration to assess consent, the contract remains valid. Option C is not applicable since the exception in Section 25 of the Contract Act, which permits promises to pay debts barred by the law of limitation, does not pertain to the contract between ABC Ltd. and XYZ Ltd.

Therefore, the correct choice is D.

Answered by Glance Learning Institute · View profile

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2( d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.Mr. X and Mr. Y have entered into an agreement for the sale of Mr. Xs car to Mr. Y for Rs. 2 lakhs. Notably, the contract does not specify the consideration involved. Subsequently, once the contract has been carried out, Mr. Y declines to fulfill the agreed-upon payment to Mr. X, contending that the contract is void due to the absence of consideration. Which of the following options provides the most accurate explanation regarding the validity of the contract between Mr. X and Mr. Y?

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2( d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.Under what circumstances can a contract be valid even if it lacks consideration?

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2( d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.What does Section 25 of the Contract Act state about agreements without consideration?

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2( d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.What does Section 25 of the Contract Act state about the effect of inadequacy of consideration in a contract?

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Directions: Kindly read the passage carefully and answer the questions given beside.The Supreme Court has held that criminal proceedings can be quashed in exercise of powers under Section 482 CrPC when it is found that the attempt was to give a "cloak of criminal offence" to a dispute which is essentially of civil nature. The Court quashed the criminal proceedings after noting that the application filed under Section 156(3), Cr. P. C did not satisfy the essential ingredients to attract the alleged offences and that they were vague. Also, the existence of a pending civil dispute on the causative incident was not disclosed in the application. The bare text of Section 482 of the Code reads as under: "482. Saving of inherent powers of High Court. — Nothing in this Code shall be deemed to limit or affect the inherent powers of the High Court to make such orders as may be necessary to give effect to any order under this Code, or to prevent abuse of the process of any Court or otherwise to secure the ends of justice. " It is settled law that the above section does not confer any inherent power on the High Courts; what the section does is it merely recognises the fact that High Courts have inherent powers. It is accepted that the High Courts have inherent powers because they are superior courts-of-record. The rule of inherent powers has its source in the maxim quando lex aliquid alicui concedit, concedere videtur id sine quo res ipsa esse non potest which means that when the law gives anything to anyone, it also gives all those things without which the thing itself could not exist. Section 482 lays down as to when the inherent power may be exercised. It enumerates three purposes for which the inherent power may be exercised. The first purpose is that the inherent power may be exercised to make orders necessary to give effect to any order under the Code. The second purpose is that the inherent power may be exercised to prevent abuse of the process of any court. The third purpose is that the inherent power may be exercised otherwise to secure the ends of justice. This provision confers the HC with an inherent power to quash an FIR or a complaint, upon satisfaction of well-established parameters that have been laid down in decisions such as State of Haryana v. Bhajan Lal and R. P. Kapur v. State of Punjab. The parameters laid down in Bhajan Lal and R. P. Kapur includes the following: If the allegations made in the FIR/complaint, even if taken at face value, do not prima facie constitute any offence or make out any case against the accused. If the allegations made in the FIR do not disclose any cognisable offence, which justifies a police investigation under Section 156(1) of the CrPC. If the allegations made in the FIR/complaint and the evidence collected in support of the same do not disclose the commission of any offence, and do not build any case against the accused. If a criminal proceeding is based on mala fides, or the proceeding is maliciously instituted with an ulterior motive.Q. In a recent example, the Supreme Court threw out criminal proceedings because it determined that the charges in the FIR were ambiguous and did not meet the requirements to constitute the accused offenses. The application submitted in accordance with Section 156(3) of the CrPC did not reveal the existence of an ongoing legal dispute regarding the incident that caused the disagreement. The petitioner asks the High Court to halt the proceedings by using its inherent authority granted by Section 482 of the CrPC. Make a decision regarding the High Courts ability to use its inherent authority in this case.

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer?

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Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Kindly read the passage carefully and answer the questions given beside.Section 25 of the Contract Act reads- “Agreements without consideration, void unless it is writing and registered or is a promise to compensate for something or is a promise to pay a debt barred by limitation law”. This section after defining consideration in definition clause in Sec. 2(d) declares that “consideration is the vital part of a valid contract” and also states some exception to the rule that it establishes and in such exceptions, the contract cannot be rendered void even if it is without consideration. The exceptions are: When the contract is in writing and registered When it is for compensating someone for his voluntary services for the promisor in the past. When it is a promise, signed or made in writing by the person or his agent to pay whole or part of a debt which is barred by the law of limitation. Note- In case of transfer of any gift from one person to another, this section does not affect its validity. Mere inadequate consideration in a contract does not render it to be void under this section. However, inadequacy may be taken into account to check whether the consent was free or not.Q.ABC Ltd. and XYZ Ltd. entered into an agreement for the provision of raw materials, with the contract specifying that XYZ Ltd. would pay Rs. 10 lakhs to ABC Ltd. within 30 days of receiving the raw materials as the agreed consideration. However, even after receiving the raw materials, XYZ Ltd. failed to make the payment, prompting ABC Ltd. to initiate legal proceedings to recover the owed amount. During the legal proceedings, XYZ Ltd. contended that the contract lacked consideration and cited Section 25 of the Contract Act, which deems agreements without consideration void unless they qualify for specific exceptions. Which of the following options provides the best explanation regarding the validity of the contract between ABC Ltd. and XYZ Ltd.?a)The contract is void due to the absence of consideration, and none of the exceptions outlined in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks sufficient consideration, and Section 25 of the Contract Act does not permit contracts with inadequate consideration.c)The contract is not void as it fits within the exception stated in Section 25 of the Contract Act, which allows for promises to pay debts barred by the law of limitation.d)The contract is not void as it pertains to the supply of valuable raw materials, and Section 25 of the Contract Act does not render contracts void solely based on the inadequacy of consideration.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.

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