Agreement Without Consideration Is What

The accused promised to pay his wife a fixed amount of money each month for her separate residence and alimony. The agreement was a registered document mentioning certain disputes and disagreements between the two parties. The Supreme Court of Calcutta refused to consider the agreement as falling within this exception. The tribunal could find no trace of affection between the parties whose dispute had forced them to separate. In this exception, it is necessary that the agreement be concluded with love and affection. Contract law defines “consideration” as an answer to the question: “How do you benefit from the conclusion of this contract?” Both parties must receive compensation for the agreement to be legally binding. For example, if you buy a jacket at your favorite store, the garment is the consideration you will receive, while your payment is the consideration that the company receives. courts have developed guidelines to determine whether there is indeed an agreement to resolve disputes in which it is unclear. First of all, there must be an offer and acceptance, whether orally or in writing. In most cases, the party receiving the offer takes the time to take it into account and often makes a counter-offer. Sometimes the party that made the initial offer can change or withdraw it.

All of these scenarios can be confusing and potentially contention. A contract without consideration is not applicable because it is legally unenforceable. “Consideration” means that each party must provide something valuable.3 min Read The gift presented by a donor and offered by the recipient is a valid agreement, even without consideration. Therefore, no consideration is required in donation agreements. In Vasant Rajaram Narvekar v Ankusha Rajaram Narvekar[7] Donation of the mother to her minor son by deed of gift with right to property until his life. The son kept it with his father and did not refuse to reach the age of majority. So accepted and irrevocable. A written undertaking to pay a debt prescribed by the Statute of Limitations is also enforceable without consideration.

The agreement must be signed by the promiser, his representative or any other person authorized by him. [4] For example, A B Rs must be 1000. Guilt is prescribed by the Statute of Limitations. A signs a written promise to pay B the sum of Rs 1000. This is a valid contract and no consideration is required. According to Article 25(3)[6], a cheque issued for a prescribed debt falls under Article 138 of the Law on Negotiable Instruments[5]. Thus, if B A treated during his illness, but refused to accept payment from A; Being a friend out of gratitude promises to pay ₹1,000 to B`s son D, the agreement between A and D is not valid for lack of consideration, as it does not fall under this exception. If you accept an offer, do so as soon as possible, as it can be revoked at any time until you accept it. As soon as you agree, the agreement is legally binding and cannot be modified or revoked.

Both in English law and in the Indian Contract Act, consideration for an enforceable contract is indispensable. It is an act or abstinence from the promise or another person at the request of the promisor….