AGREEMENT WITHOUT CONSIDERATION IS VOID (SECTION 25)

SECTION 25 –  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.

Section 25 of the Indian Contract Act, 1872, deals with agreements made without consideration. It states that any agreement made without consideration is generally considered void, unless it falls into certain exceptions.

Void Agreements: Agreements without consideration are generally considered void due to the absence of a reciprocal exchange of promises. In simpler terms, for an agreement to be legally enforceable, something of value must be given or promised in return. However, Section 25 provides clarity on when such agreements can still be enforceable.

 Exceptions to Void Agreements: 

1. Written and Registered Agreements: If an agreement without consideration is in writing and registered, it becomes enforceable. This requirement is put in place to ensure that parties cannot easily claim enforceable rights without proper documentation. 
2. Promise to Compensate or Pay Debt: An agreement without consideration can still be enforceable if it is a promise to compensate for something already done or a promise to pay a debt that is barred by the Limitation Law. In both scenarios, the agreement is deemed valid to ensure fairness and prevent exploitation. 

Interpreting Section 25: Section 25 aims to strike a balance between protecting parties from unfair agreements and allowing exceptions in specific situations where the absence of consideration may be justified. 

Section 25 of the Indian Contract Act serves as a crucial provision in determining the enforceability of agreements without consideration. While such agreements are generally considered void, this section provides exceptions that allow for enforceability under specific circumstances, such as written and registered agreements or promises to compensate for past actions or debts barred by the Limitation Law. 

REFERENCES : 

https://indiankanoon.org/docfragment/138966094/?formInput=section%2025%20of%20contract%20act%20%20%20doctypes%3A%20judgments%20fromdate%3A%201-1-2023%20todate%3A%2031-12-2023 – INDIAN KANOON

https://www.casemine.com/judgement/in/629a2a36b50db9bb596d959d – CASEMINE