Indian Contract Act - Study Mode
[#326] Inadequacy of consideration does not make the contract
Correct Answer
(D) Neither void nor voidable
Explanation
Solution: Under the Indian Contract Act, 1872 , consideration is one of the essential elements of a valid contract. However, Section 25 of the Act clarifies that inadequacy of consideration alone does not render a contract void or voidable. Consideration must be something of value in the eyes of law , but the law does not require that it be adequate, only that it be lawful. Exception arises only if the consideration is so inadequate that it suggests coercion, fraud, or undue influence — in which case the contract may become voidable at the option of the aggrieved party. Hence, inadequacy of consideration alone does not affect the validity of a contract, making it neither void nor voidable.
[#327] X applied for the post of Principal of a local college and the governing body passed a resolution appointing him. After the meeting, one of the members of the governing body privately informed him of the resolution. Subsequently, the resolution was rescinded. X claims damages. In this context, which one of the following propositions is correct?
Correct Answer
(A) X' cannot claim damages as there was no communication
[#328] B' says to 'A' - "If you do not deny it, I shall assume that the horse is sound". 'A' says nothing. Here 'A's silence is equivalent to speech. This illustration is based on
Correct Answer
(A) Section 17
[#329] Under Indian Contract Act, an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is
Correct Answer
(D) A voidable contract
[#330] If instead of avoiding the contract the contractor accepts the belated performance of reciprocal obligation on the part of the employer, the innocent party i.e., the contractor, cannot claim compensation for any loss occasioned by the non-performance of the reciprocal promise by the employer at the time agreed, unless at the time of such acceptance, he gives notice to the promisor of his intention to do so. In which case it was held
Correct Answer
(A) State of Kerala v. M. A. Mathai (2007)