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Indian Contract Act - IV
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A person agrees to sell his property worth Rs. 20,00,000 for Rs. 2,00,000. The consideration is inadequate. The contract is
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A
valid
💡 Explanation:
Consideration need not be adequate, but it must be real. It need not be approximately of equal value with the promise for which it is exchanged, but it must be something which the law would regard as having some value.
Thus, if A agrees to voluntarily sell his house worth Rs. 20,00,00 for Rs. 2,00,000, it is a valid contract.