David's Blog | Misc ramblings about things in general, work and technical items of interest.

Apr/21

8

An Agreement Without Consideration Is Void Discuss Its Exceptions

The courts have developed guidelines to determine whether there is indeed an agreement to help resolve disputes for which this is not clear. First, there must be an offer and acceptance, whether oral or written. In most cases, the party receiving the offer takes the time to review it and often makes a counter-offer. Sometimes the party that made the initial offer can change or withdraw it. All of these scenarios can lead to confusion and a possible dispute. (g) A agrees to sell a horse worth 1,000 to 10 Rs. A disputes that his consent to the agreement was disclosed. (ii) The agreement is a promise to compensate something – if an agreement is reached to compensate the person who has already done something voluntary for the promisor, it can be done without consideration. 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. While a deal may seem unfair in hindsight, the court will generally not determine whether the value of the consideration is proportionate. The exception is when the gap is so large that it is in bad faith. In this case, the court may find that the contract is unsured because the party who offered the consideration of a much lower value acted unfairly. Another essential and most important element of an agreement is review. According to Section 2 (d) of the Indian Contract Act of 1872, “if the promise or any other person makes or has renounced something at the request of the promise, or abstains or undertakes to make or refrain from making or abstaining, such an act or promise is designated as a consideration of the promise”[3] An agreement cannot be reached without consideration. For example, A agrees to sell his car for free to B. It is not an agreement, because there is no quid pro quo. In accordance with Sections 10 and 25 of the Indian Contract Act, 1872, consideration is essential in a valid contract.

No tags

Comments are closed.

<<

>>

Theme Design by devolux.nh2.me