Exception to the Rule "No Consideration, No Contract"

Introduction:
The basic principle of a contract is that it is an agreement between two or more parties that creates legally binding obligations. One of the essential elements of a contract is consideration, which refers to something of value that is given in exchange for the promise of the other party. However, there are certain exceptions to this rule. Let's discuss them in detail.

Natural Love and Affection:
The first exception to the rule is natural love and affection. This means that a contract made out of natural love and affection does not require consideration. Examples of such contracts are agreements between family members, such as parents and children or spouses.

Completed Gift:
The second exception is a completed gift. A completed gift is a transfer of property without any consideration. Once the gift is given, the donor cannot take it back. The recipient becomes the rightful owner of the gift.

Agency:
The third exception is agency. An agent can enter into a contract on behalf of the principal without receiving any consideration. The principal is bound by the contract entered into by the agent.

Compensation for Involuntary Services:
The last exception is compensation for involuntary services. If a person performs a service without any obligation or request, they are not entitled to compensation. However, if the service was performed voluntarily, the person who benefited from the service may offer compensation as a token of gratitude.

Conclusion:
In conclusion, the rule "No Consideration, No Contract" is a fundamental principle of contract law. However, there are certain exceptions to this rule. Natural love and affection, completed gifts, agency, and compensation for involuntary services are all exceptions to the rule. It is important to understand these exceptions to ensure that contracts are enforceable and legally binding.

Answer is "B"....option 'a' , 'c' ,d are exceptions and they asked about not an exception .. So answer is B..there is compensation for past voluntary service but not for involuntary service