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 worth Rs. 20,000 for Rs.100 only to 'B'. A's consent is freely given. Which of the following derivations is CORRECT?

PRINCIPLE: Minor's agreement is void from the very beginning. It can never be validated. It cannot be enforced in the court of law. FACTS: 'A', a boy of 16 years of age, agrees to buy a camera from 'B', who is a girl of 21 years of age. Which of the following derivations is CORRE…

PRINCIPLE: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void. FACTS: 'X', promises to pay 'Y' Rs. 50,000, if he ('Y') commits a crime. 'X' further promises to indemnify him (…

PRINCIPLE: Acceptance should be made while the offer is still subsisting. The offeror is free to retract his offer at any time before his offer gets accepted by the offeree. Once the offer is withdrawn or is lapsed, it is not open to be accepted so as to give rise to a contract.…

PRINCIPLE: The consideration or object of an agreement is unlawful if the Court regards it as opposed to public policy. Every agreement of which the object or consideration is unlawful is void. FACTS: 'X' promises to obtain for 'Y' an employment in the public service; and 'Y' pro…

PRINCIPLE: Acceptance (of offer) must be communicated by the offeree to the offeror so as to give rise to a binding obligation. The expression 'by the offeree to the offeror' includes communication between their authorised agents. FACTS: 'X' made an offer to buy Y's property for…

PRINCIPLE: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake. When consent to an agreement is caused by coercion…

PRINCIPLE: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for the determination of such intention is not subjective, rather it is objective. The intention of the parties is to b…

PRINCIPLE: Agreements in restraint of marriage are void. FACTS: 'X' enters into an agreement with 'Y' where under he agrees not to marry anybody else other than a person whose name starts with the letter 'A', and promises to pay Rs. 1,00,000 to 'Y' if he ('X') breaks this agreeme…