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Indian Contract Act

Assertion (A): Agreement without consideration is void. Reason (R): Consideration may be given by the promisee or any other person.

Question

Assertion (A): Agreement without consideration is void. Reason (R): Consideration may be given by the promisee or any other person.

(A) and (R) both are true, and (R) is the correct explanation of (A)

(A) and (R) both are true, but (R) is not the correct explanation of (A)

(A) is true, but (R) is false

(A) is false, but (R) is true

Solution

Correct option is B

Both the Assertion (A) and Reason (R) are true, but (R) is not the correct explanation of (A). The statement that "an agreement without consideration is void" is true as per Section 25 of the Indian Contract Act. However, the reason, though true, explains a different principle—that consideration can come from the promisee or any third party.
Information Booster:
Consideration is an essential element of a valid contract under Indian law, except in certain exceptional cases, such as agreements made out of natural love and affection or promises to pay a barred debt. While consideration must exist, it can flow from either the promisee or a third party.
Additional Knowledge:
· Consideration by a third party: Under the Indian Contract Act, consideration can be provided by a third party, unlike in English law, which generally requires consideration to come from the promisee.