Multiple choice

An agreement made with free consent to which the consideration is lawful but inadequate, is

  1. void

  2. valid

  3. voidable

  4. unlawful
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 23 of Contract Act, lawful consideration is consideration not forbidden by law (consideration and object). Inadequacy of consideration (too little value) does NOT make an agreement void or unlawful. Courts don't interfere with adequacy. The agreement remains valid if consent is free and consideration is lawful.

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