Agreement without Consideration

(Section 25 of Indian Contract Act 1872 )

SUBMITTED BY:
GYANESH TIWARY, B.B.A L.L.B
Roll number: 2222
SUBMITTED TO:
MRS. SUSHMITA SINGH

THIS ROUGH DRAFT IS SUBMITTED IN THE PARTIAL FULFULMENT

OF THE 2ND SEMESTER FOR THE ACEDEMIC YEAR 2019-2024

8TH FEBURARY 2020

CHANAKYA NATIONAL LAW UNIVERSITY

MITHAPUR, PATNA-800001
HYPOTHESIS
The researcher aims to understand the whole concept of Agreements without considerations.
Along with that there will be special emphasis on the explaining of all the three sub-clauses
of Section 25 of Indian Contract Act 1872.

RESEARCH METHODOLOGY

The research will be based mostly on critical analysis of secondary data.

AIM AND OBJECTIVE

1. To understand, comprehend and grasp the concept of Agreements without Consideration.

2. To understand all the 3 sub-clauses of section 25 of ICA with the help of proper case laws
and illustrations.

CHAPTERISATION

1. Sec. 25 of Indian Contract Act 1872

2. What is Consideration?

3. Natural love and affection

4. Past Voluntary Services

5. Promise to pay a time-barred debt

6. Gifts

7. Agency

8. Other cases and illustrations

9. Conclusions and Suggestions

INTRODUCTION

The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the
key act regulating Indian contract law. The Act is based on the principles of English
Common Law. It is applicable to all the states of India.

Consideration is an integral part of a contract. The rules of consideration state that it is essential to
have consideration for a contract. But there are some specific exceptions to the “No consideration
no contract” rule

As per Section 10 and Section 25 of the Indian Contract Act, 1872, consideration is essential in a
valid contract. Which means lack of consideration will lead to a contract being void.

In the case of Natural Love and Affection, if an agreement is in writing and registered between
two parties in close relation (like blood relatives or spouse), based on natural love and affection,
then such an agreement is enforceable even without consideration.

In the case of payment of past debts, if a person has done a voluntary service in the past and the
beneficiary promises to pay at a later date, then the contract is binding provided:

 The service was rendered voluntarily in the past

 It was rendered to the promisor

 The promisor was in existence when the voluntary service was done (especially important
when the promisor is an organization)

 The promisor showed his willingness to compensate the voluntary service