Multiple choice

According to Explanation 2 to Section 25 of the Indian Contract Act, which of the following statements are correct?

i. An agreement to which the consent of the promisor is not freely given is valid because consideration is adequate. ii. An agreement to which the consent of promisor is freely given is valid even if consideration is inadequate. iii. Consideration must be legal. iv. Consideration can be illegal.

  1. i and ii

  2. ii and iii

  3. iii and iv

  4. i and iv

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to Explanation 2 to Section 25 of the Indian Contract Act, an agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given. 

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