Question

    Consider the following statements: Statement (I):

    A promise made in writing to pay a debt barred by limitation is invalid. Statement (II): A promise to compensate for something done is valid.
    A Statement (I) is correct, (II) is incorrect Correct Answer Incorrect Answer
    B Statement (II) is correct, (I) is incorrect Correct Answer Incorrect Answer
    C Both statements are correct Correct Answer Incorrect Answer
    D Both statements are incorrect Correct Answer Incorrect Answer

    Solution

    Contract Act: Section 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: (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.

    Practice Next
    More Banking Related Laws Questions
    ask-question