Exception When Agreement Without Consideration Is Valid

The rule of consideration for any contract does not apply to gifts. Explanatory Note (1) to section 25 of the Indian Contract Act 1872 provides that the no-counterparty agreement rule, which is rescinded, does not apply to gifts made by a donor and accepted by a donor. A promise to pay for past voluntary service is binding and such agreements do not require exceptions. It is necessary that services be provided on a voluntary basis. For example, if A supports B`s grandson and promises B to pay A`s expenses. It is a contract. B was legally obliged to support her grandson. Under this exception, the promise must be to compensate a person who has done something for the promiser himself, not a person who has done nothing for the promiser. ii) The agreement is a promise to compensate for something done – If an agreement is made to compensate the person who has already done something voluntarily for the promiser, this can be done without regard. 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. A written and registered agreement, based on natural love and affection between parents, can be implemented without regard. In Rajkukhy Dabee vs. Bhootnath Mookerjee.[2] Rajlukhy Dabee v. In the case of Bhootnath Mookkerjee, the accused promised to pay his wife a fixed sum of money each month for a separate stay and alimony. The agreement was in writing and contained in a registered document mentioning certain disputes and disagreements between the two parties. The court refused to place the agreement under this exception, as the agreement was not concluded out of love and affection, which was indicated by the registered document. (iii) in the case of a promise to pay a debt prescribed by the statute of limitations – this agreement shall be in writing and signed by the person to be inculcated or by his representative, in his general or expressly authorized name, to pay all or part of a debt the payment of which the creditor could have imposed, but for the statute of limitation of remedies.

(a) A promises, without consideration, to give B 1000. This is an agreement that has not been concluded. A promise of compensation in whole or in part for the voluntary service for the promiser may be kept. In other words, the promise to pay for past voluntary service is binding. It is important that the service was provided voluntarily and also to the promisor. In this exception, certain elements must be fulfilled – the service must be provided voluntarily in the past, it was provided to the promisor, the promisor existed at the time of voluntary service, the promisor showed his willingness to pay for voluntary service. . .