Principle: A contract which is duly supported by real and lawful consideration is valid notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract and not for the courts (to decide) when the contract is sought to be enforced. An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate but the inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given. Facts: A agrees to sell his mobile phone of 20,000 for 100 only to B. A’s consent is freely given. Which of the following derivations is CORRECT?

🎲 Try a Random Question  |  Total Questions in Quiz: 185  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
Legal Terms and Maxims Questions Based on Previous Papers — practice the complete quiz, review flashcards, or try a random question.


Principle: A contract which is duly supported by real and lawful consideration is valid notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract and not for the courts (to decide) when the contract is sought to be enforced. An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate but the inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given. Facts: A agrees to sell his mobile phone of 20,000 for 100 only to B. A’s consent is freely given. Which of the following derivations is CORRECT?