Consider the following statements and point out which of them is correct: (1) An agreement made without consideration is void. (2) Consideration should have value in the eye of law. (3) Consideration has to be adequate.

Correct option is B

Statements (1) and (2) are correct. Under Section 25 of the Indian Contract Act, agreements made without consideration are generally void unless exceptions apply. Also, consideration must have some value in the eye of the law. However, consideration does not need to be adequate as per Section 25(2), meaning it does not need to be proportionate, only something of value.
Information Booster: Consideration is necessary for a contract to be valid, but it need not be adequate as long as both parties freely agree to the terms.
Additional Knowledge:
· (c) (1) and (3): Incorrect, consideration need not be adequate.
· (d) (2) and (3): Incorrect, adequacy of consideration is not required.
· (a) Incorrect, as consideration does not have to be adequate.