Question

inadequncy of consideration in a comtract is ​

Answer 1

Answer:

Solution:

Inadequacy of consideration

Consideration can be terms of money, property etc. inadequate consideration is not void but it renders the contract unenforceable because of the improper bargaining or by itself. Inadequate consideration must be distinguished from nominal consideration.

Explanation:

There is a contract between 'A' and 'B'

According to Explanation 2 of Section 25 of the Indian Contract Act 1872, 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. In the given situation, A agrees to sell his phone worth Rs.20000 for Rs.100 only to B, though the consideration is inadequate, but the consent of A is given freely so, there is a contract between A and B.