Agreement Without Consideration Valid
The reason why contracts require the exchange of an object of value is to distinguish a legal agreement from a generous gift or a promise made by one party to another, none of which is legally enforceable. For example, if your friend mows your lawn without asking for anything in return, it doesn`t count as a contract because you didn`t promise a quid pro quo. If your friend promises to mow your lawn but doesn`t, you can`t sue for damages. Statement 2: the agreement that is free from the promoter`s agreement is not refused for the sole reason that the consideration is insufficient; However, the inadequacy of the consideration may be taken into account by the Court of Justice in determining whether the promisor`s consent was freely given. In each of these cases, such an agreement is a contract. The rule of non-consideration no contract does not apply to gifts. Explanatory note (1) on Section 25 of the Indian Contract Act, 1872 states that the rule of a non-nullity agreement does not apply to gifts from a donor made by a donor and accepted by a company. The commitment to compensate all or part of the voluntary service for the promisor can be implemented. In other words, the promise to pay for a previous voluntary service is binding.
It is important that the service was rendered voluntarily and also for the promisor. With this exception, some essential things must be accomplished – the service must be done voluntarily in the past, it was given to the promisor that existed when the volunteering was done, and the Promisor showed that it was willing to compensate for volunteerism. For example, A finds B`s handbag on the street and returns to it. B rejoices and finds his handbag and promises A to pay 1000 rupees as a gesture of gratitude. In this case, there is no quid pro quo, but it is always an agreement, as it is the exception of “past voluntary service”. Another situation that is dealt with in this exception is that if the promisor did something for the promisor, which the promisor was legally bound to do, a subsequent promise to pay for the deed is enforceable. Sometimes a contract is cancelled by the court because it is not considered. This usually occurs when: Thus, where B treats A during his illness, but refused to accept payment of A; When FreundeA gratefully promises to pay 1000 us-euro to B`s son D, the agreement between A and D is cancelled for lack of consideration, as it does not fall under this exception. i) If the agreement is written – This type of agreements are written and are recorded by law and are made because of the natural love and affection between the parties. The parties concerned should be close to each other. If the benefits are provided voluntarily, without the project`s wishes or by any means other than at the request, the promisor agrees to pay the person who provided its services.
In such cases, the commitment does not need consideration to support them, and the case falls under section 25 of the act; Sindha Shri Ganpatsingji v. Abraham aka Vazir Mahomed Akuji, (1895) 20 Bom 755. The Tribunal relied on Dutton/Poole that the deed of donation and the concomitant agreement between the applicant and the defendant can be considered a transaction and that the defendant obtained from her mother an estate that would be sufficient for a section 2 review.