| Principle A contract is an agreement which the law will enforce. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object. |
| Facts Varun, a young man of 28 yrs without any consideration agrees to give Vivek Rs 20000. Varun fails to fulfil his promise. Vivek files a suit against Varun for the amount. |
A) Vivek will succeed as Varun made the promise of his own free will
B) Vivek will succeed as the money is not being paid for any illegal object
C) Vivek will succeed as Varun has the capacity to make the contract
D) Vivek will fail as the agreement is without consideration
Correct Answer: D
Solution :
Section of 2[d] of Contract Act defines consideration. Section 25 says agreement without consideration void unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.
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