Correct option is B
As per Section 25 of the Indian Contract Act, an agreement with inadequate consideration is lawful as long as it is entered into with free consent and for a lawful purpose. The adequacy of consideration does not affect the validity of the contract.
Information Booster: Consideration need not be adequate; it only needs to be something of value, even if it is not proportionate, provided there is free consent.
Additional Knowledge:
· (a) Unlawful: Incorrect, as inadequacy of consideration does not make a contract unlawful.
· (c) Void: Incorrect, inadequacy does not void a contract.
· (d) Voidable: Incorrect, as no defect in consent is indicated.
