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The inadequacy of consideration will be taken into account by a court of law:
- a)Always at the discretion of the court
- b)When the promisor performs his promise
- c)When absence of free consent is pleaded in the formation of the contract
- d)When the promisor expresses his desire to get maximum return for his promise
Correct answer is option 'C'. Can you explain this answer?
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The inadequacy of consideration will be taken into account by a court ...
When absence of free consent is pleaded in the formation of the contract
Description: 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 ...
Inadequacy of Consideration in Contract Law
The concept of consideration is fundamental in contract law, as it refers to something of value exchanged between parties. However, the adequacy of this consideration may be scrutinized by courts under certain circumstances.
Role of Consideration in Contracts
- Consideration must be sufficient but need not be adequate.
- Courts generally do not weigh the adequacy of consideration unless issues regarding the formation of the contract arise.
When Does Inadequacy Matter?
- Inadequacy of consideration becomes significant primarily when it is linked to the absence of free consent.
- If a party claims that their consent was not freely given—due to factors like duress, undue influence, misrepresentation, or fraud—the court may investigate the adequacy of consideration as part of assessing consent.
Implications of Free Consent
- If the court finds that consent was not freely given, it may declare the contract voidable.
- This serves to protect parties from being bound by agreements that they did not enter into voluntarily.
Conclusion
- Thus, option 'C' is correct because the inadequacy of consideration is relevant when the absence of free consent is pleaded.
- This highlights the importance of free and informed consent in contract formation, making it a critical factor for the court’s consideration.
In summary, while consideration is essential for a contract, its inadequacy is particularly scrutinized when free consent is compromised, ensuring fairness in contractual agreements.
The concept of consideration is fundamental in contract law, as it refers to something of value exchanged between parties. However, the adequacy of this consideration may be scrutinized by courts under certain circumstances.
Role of Consideration in Contracts
- Consideration must be sufficient but need not be adequate.
- Courts generally do not weigh the adequacy of consideration unless issues regarding the formation of the contract arise.
When Does Inadequacy Matter?
- Inadequacy of consideration becomes significant primarily when it is linked to the absence of free consent.
- If a party claims that their consent was not freely given—due to factors like duress, undue influence, misrepresentation, or fraud—the court may investigate the adequacy of consideration as part of assessing consent.
Implications of Free Consent
- If the court finds that consent was not freely given, it may declare the contract voidable.
- This serves to protect parties from being bound by agreements that they did not enter into voluntarily.
Conclusion
- Thus, option 'C' is correct because the inadequacy of consideration is relevant when the absence of free consent is pleaded.
- This highlights the importance of free and informed consent in contract formation, making it a critical factor for the court’s consideration.
In summary, while consideration is essential for a contract, its inadequacy is particularly scrutinized when free consent is compromised, ensuring fairness in contractual agreements.
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The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer?
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The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer?.
The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The inadequacy of consideration will be taken into account by a court of law:a)Always at the discretion of the courtb)When the promisor performs his promisec)When absence of free consent is pleaded in the formation of the contractd)When the promisor expresses his desire to get maximum return for his promiseCorrect answer is option 'C'. Can you explain this answer?.
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