INTERVIEW QUESTIONS
MERCANTILE LAW
CONSIDERATION
DETAILS
Question: Agreement without consideration is valid when made? (a) Out of love and affection due to near relationship (b) To pay a time barred debt (c) To compensate a person who has already done something voluntarily (d) All of these
Answer: (d) All of these Description: There are some exceptions to the general rule No consideration, No contract: They are as following: (a) Agreements made on account of natural love and affection[Section 25(1)] (b) Promise to pay time barred debt[Section 25(3)] (c) Promise to compensate[Section 25(2)]
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