Multiple choice

To create an agency,

  1. consideration is necessary

  2. consideration is not necessary

  3. some consideration is necessary

  4. adequate consideration is necessary
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The general rule of law is "no consideration, no contract", i.e. in the absence of consideration, there will be no contract. However, the law recognises the following exceptions to the rule of consideration. Under Section 185 of the contract act, no consideration is necessary to create an agency.

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