A owes Rs. 2000 to B but the debt is barred by Limitation Act, A signs a written promise to pay B Rs. 1,000 on account of debt. Is it a valid contract? Refer relevant provision of the contract Act.
must also contain Legal provision and Reason for the answer.
Answers
Explanation:
Central Government Act
Section 25(3) in The Indian Contract Act, 1872
(3) It is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1.—Nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made. Explanation 2.—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. Illustrations