Multiple choice

Exceptions to the statement “No consideration, no contract” are the following.

  1. No consideration is required to create an agency as also in the case of completed gifts.

  2. A promise made without consideration is valid if it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt, which is barred by the Law of Limitation.

  3. A promise made without any consideration is valid if it is a promise to compensate wholly or in part a person who has already voluntarily done something for the promisor or something which the promisor was legally compellable to do.

  4. All of these
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D Correct answer
Explanation

The general rule 'no consideration, no contract' has several well-established exceptions. Agency creation and completed gifts require no consideration. Written promises to pay time-barred debts are enforceable under Section 25(3). Promises to compensate for past voluntary acts (Section 25(2)) are also valid without fresh consideration.

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