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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. X's 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?
  • a)
    The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.
  • b)
    The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.
  • c)
    The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.
  • d)
    The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Directions: Kindly read the passage carefully and answer the questions...
The contract between Mr. X and Mr. Y remains valid because it falls within the exception specified in Section 25 of the Contract Act. This exception allows for contracts where the consideration is implied. In this particular case, while the contract doesn't explicitly state the consideration, it is understood that Mr. X is selling his car to Mr. Y for Rs. 2 lakhs. As long as some form of consideration exists, even if not explicitly mentioned, the contract is not void. Option A is inaccurate as the contract falls under the Section 25 exception, which covers contracts with implied consideration. Option B is also incorrect because the contract is not void due to insufficient consideration; rather, it involves implied consideration. Option C is not applicable as Section 25 of the Contract Act does not exempt contracts from requiring consideration; it merely addresses contracts with implicit rather than explicitly stated consideration.
Therefore, the correct choice is D.
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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.?

Direction: Apply the legal principles to the facts given below and select the most appropriate answer.Legal Principles: Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance or a benefit which is of some value in the eyes of law. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of `20,000. After six months of commencing the work, Hasan realised he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognised that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.MXM Co. agreed to pay Hasan an additional `575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional n5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.

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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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.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.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?a)The contract is void because it lacks consideration, and none of the exceptions delineated in Section 25 of the Contract Act are applicable.b)The contract is void because it lacks adequate consideration, and Section 25 of the Contract Act does not permit contracts with insufficient consideration.c)The contract is not void because it falls within the exception detailed in Section 25 of the Contract Act, which encompasses oral contracts that do not necessitate consideration.d)The contract is not void because it falls under the exception outlined in Section 25 of the Contract Act, which encompasses contracts where the consideration is implied.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.
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