Revision Question 2

The general rule is that an agreement made without consideration is void . What are the four types of agreements that are exceptional to this general rule ? Under the provision of the Contract Act 1950 , which of the above four exceptional agreements are required to be in written form ?

Answer : Four types of the exceptional agreements :

1. An agreement made on account of natural love and affection between parties standing in near relation to each other . 
2. An agreement to compensate for the past voluntary act 
3. An agreement to compensate a person who did an act which the promisor was legally compellable to do (Example : X supports Y's daughter, and Y promises to pay C for his expenses in doing so . This is a contract ) 
4. An agreement to pay a statute-barred debt ( Example : X owes Y $100K but the debt is barred by limitation . X signs a written promise to pay Y $50K on account of the debt . THis is a contract ) 

Agreements (i) and (iV) are required to be made in writing under the Act.