VOID AGREEMENTS
24. AGREEMENTS VOID, IF CONSIDERATIONS AND OBJECTS UNLAWFUL IN PART.-
If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.
ILLUSTRATION
A promises to superintend, on behalf of B, a legal manufacturer of indigo, and an illegal traffic in other articles. B promises to pay to A a salary of 10,000 rupees a year. The agreement is void, the object of A's promise, and the consideration for B's promise, being in part unlawful.
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.—
An agreement made without consideration is void, unless—
1. it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless
2. it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless.
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; 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
a) A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing andregisters it. This is a contract.
b) A finds B's purse and gives it to him. B promises to give A Rs. 50. This is a contract.
c) A supports B's infant son. B promises to pay A's expenses in so doing. This is a contract.
d) A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 onaccount of the debt. This is a contract.
e) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A's consent to the agreement was freely given. Theagreement is a contract notwithstanding the inadequacy of the consideration.
f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that his consent to the agreement was freely given.The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A's consent was freely given.
