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Agreement Without Consideration Is Void-Exceptions

Section 2(d) of Indian Contract Act defines consideration as follows-

When:
  • at the desire of the promisor
  • promisee/any other person
  • has done/abstained from doing something (or)
  • does/abstains from doing something (or)
  • promises to do/abstain from doing something such act/abstinence/promise is called consideration

Section 25 defines exceptions to rule an agreement without consideration is void-

(a) Any contract entered
  • out of love & affection
  • voluntarily services
  • time barred debts consideration is not necessary also

(b) In Subscription or Donation for charitable purpose-
For every promise consideration is neccessary but the question arises whether consideration is necessary for charitable purposes.

Abdul Aziz v. Masum Ali, AIR 1914 ALL 22-
In this case defendant promised to pay Rs.500/- for the repairs of Mosque and did not pay. But the process of repair was not started.In an action by the plaintiff, it was held that promise by the defendant was not enforceable (since construction was not yet started).


In another case Kedarnath v. Gorie Mohammedh I.L.R.(1887)14 Cal.64-
This was held enforceable on the ground that the construction was already started relying upon the promise of the defendant.

(c) In case of performance of adjusting duty-

Chintaman v/s. Kaluraju
Here an advocated cannot ask his client for extra fees for the better performance of duty. It is his statutory duty and he is bound to do that. He cannot ask for extra consideration. No consideration is required in case of performance of adjusting duty.

(d) In case of Completed Gift-

Consideration is not neccessary if gift was completed.

(e) Contract of agency
(f) Gratuitous Bailment
(g) Contract of Guarantee

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