The inadequacy of consideration will be taken into account by a court ...
According to explanation 2 of Section 25, 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.
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The inadequacy of consideration will be taken into account by a court ...
Validity of contract is not affected by the inadequacy of consideration. even though the contract becomes void if such inadequacy arised from any sort of coercion that is lacking free consent, because here due to the exercise of coercion the other party accept the contract even though there is a inadequate consideration in such a case the contract would become void hence the court will observe whether there is a free consent or not in such cases where there is inadequate consideration hence options C is the correct answer
The inadequacy of consideration will be taken into account by a court ...
Explanation:
In the context of contract law, consideration refers to something of value that is given in exchange for a promise or performance. It is an essential element of a valid contract, as it indicates that both parties have agreed to give up something in order to create a binding agreement. However, there are situations where the adequacy of consideration may be called into question.
1. Definition of Consideration:
Consideration can be defined as the price that one party pays for the promise or performance of the other party. It can take the form of money, goods, services, or even a promise to do or refrain from doing something.
2. Inadequacy of Consideration:
The inadequacy of consideration refers to situations where the value of what is given in exchange for a promise or performance is deemed to be insufficient. In other words, the consideration provided may be significantly less valuable than what is being promised or performed.
3. Court's Discretion:
Under normal circumstances, the court does not concern itself with the adequacy of consideration. As long as there is some form of consideration, the court will generally consider it sufficient to support the contract. This is known as the rule of nominal consideration.
4. Absence of Free Consent:
However, there are exceptions to this rule, and one such exception is when the absence of free consent is pleaded in the formation of the contract. If one party can prove that their consent to the contract was not freely given, such as due to duress, fraud, or undue influence, the court may take the inadequacy of consideration into account.
5. Maximum Return for Promise:
On the other hand, the desire of the promisor to get the maximum return for his promise is not a factor that the court typically considers in relation to the adequacy of consideration. The court is more concerned with the presence of consideration and the fairness of the overall agreement, rather than the subjective motivations of the parties.
Conclusion:
In summary, the inadequacy of consideration will be taken into account by a court of law when the absence of free consent is pleaded in the formation of the contract. The court has the discretion to consider whether the lack of free consent affects the fairness and validity of the contract, including the adequacy of consideration provided. However, the desire of the promisor to get the maximum return for his promise is not a relevant factor in determining the adequacy of consideration.
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