An Agreement Without Consideration Is Void Explain

While an agreement may seem unfair a posteriori, the court will generally not decide whether the value of the consideration is proportionate. The exception is when the discrepancy is such that it constitutes bad faith. In this case, the Tribunal may find that the contract is inexorable because the party who offered consideration of a much lower value acted unfairly. The inadequacy of the examination is a fact which the Court of Justice should take into account when considering whether A`s agreement was given voluntarily or not. Example: Venkatswamy (vs) Rangaswamy (1903): Facts: By a recorded agreement, “V” promises, due to nature, love and affection for his brother “R” to pay debts to “B”. If “V” does not exonerate guilt. Verdict: “R” can exonerate him and then sue “V” to recover the amount. It is therefore a valid agreement.2. Compensation for past voluntary service: a promise made without consideration applies when it comes to a person who has already voluntarily done something for the promiser, but without compensation. Simply put, the promise to pay for past voluntary service is binding.3. Promise to pay indebted debts: An agreement to pay a deferred debt is enforceable if the following conditions are met. (f) A agrees to sell a horse worth 1,000 for paragraph 10.

A`s agreement was given voluntarily. The contract is a contract, regardless of the insufficiency of the consideration. Sometimes a contract is cancelled by the court because it is not taken into consideration. This usually occurs when: (g) A agrees to sell a horse worth $1,000 for paragraph 10. A denies that his consent to the agreement was given voluntarily.