Multiple choice

Directions: Go through the problem and encircle the most appropriate answer.

A contract without consideration is void. A owes B Rs. 1100/- but the debt is barred by limitation. B cannot file a suit. A signs a written promise to pay B Rs. 500 on account of this debt. B now files a suit for the recovery of Rs. 500/-. Decide.

  1. The contract is not enforceable as consideration is inadequate

  2. Time barred debt is no consideration

  3. The contract is enforceable as it has sufficient consideration
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under Section 25(3) of the Indian Contract Act, a written promise to pay a time-barred debt is enforceable even though the original debt cannot be sued upon. The written promise itself constitutes new consideration. A's written promise to pay Rs. 500 is valid consideration, and B can enforce this new promise regardless of the original debt being time-barred.

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