Agreement Without Consideration In Law

While a deal may seem unfair in hindsight, the court will generally not determine whether the value of the consideration is proportionate. The exception is when the gap is so large that it is in bad faith. In this case, the court may find that the contract is unsured because the party who offered the consideration of a much lower value acted unfairly. A written and recorded agreement, based on natural love and affection between parents, is applicable without consideration. In Rajkukhy Dabee v Bhootnath Mookerjee. A promise to compensate all or part of the voluntary service for the promisor is achievable. In other words, the promise to pay for a previous voluntary service is binding. It is important that the service was rendered voluntarily and also for the promisor. With this exception, some essential things must be accomplished – the service must be done voluntarily in the past, it was given to the promisor that existed when the volunteering was done, and the Promisor showed that it was willing to compensate for volunteerism. For example, A finds B`s handbag on the street and returns to it. B rejoices and finds his handbag and promises A to pay 1000 rupees as a gesture of gratitude.

In this case, there is no quid pro quo, but it is always an agreement, as it is the exception of „past voluntary service“. Another situation that is dealt with in this exception is that if the promisor did something for the promisor, which the promisor was legally bound to do, a subsequent promise to pay for the deed is enforceable. In each of these cases, such an agreement is a contract. Sometimes a contract is cancelled by the court because it is not considered. This usually occurs when: Manali Singhal v. Ravi Singhal[5] , A family settlement between a man and his wife was made to provide child support to the woman. This was considered applicable because it was designed to deduce the satisfaction and peace of mind of family harmony. Thus, it could be interpreted either as love and affection, or taken into consideration. If one person assumes responsibility for another`s promise to contribute to charity, then the contract is valid. In this case, the rule of non-consequence does not apply. Statement 2: the agreement that is free from the promoter`s agreement is not refused for the sole reason that the consideration is insufficient; However, the inadequacy of the consideration may be taken into account by the Court of Justice in determining whether the promisor`s consent was freely given. This first exception stipulates that an agreement can be written and recorded, but such an agreement should be made out of love and affection.

In addition, in an agreement, the parties should be close to their loved ones. But who is this close relative? What is natural love and affection? The close relative meaning, even if not specifically defined, includes those that are bound by blood and marriage, and natural love and affection is the degree of love and instinctive affection between the parties that are almost related. A and B are brothers. According to his will, after his death, his father A appointed the sole owner of his property. B files proceedings against A to assert his right to property, but loses the case. A and B reach a reciprocal decision in which A agrees to transfer half of the assets to his brother and to record a document of this action. Finally, A failed to live up to his promise and B filed a lawsuit to recover his interest in the property. The court found that, because the agreement was based on natural love and affection, no consideration was applicable and that John had the right to recover his share.