New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Mark the correct statements: 1. An agreement

    without consideration is void 2. Consideration should have some value in the eyes of law 3. Consideration must be adequate 4. Invitation cannot be proved in a court of law
    A 1, 2 and 3 Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 3 only Correct Answer Incorrect Answer
    D 1 and 2 only Correct Answer Incorrect Answer

    Solution

    An agreement without consideration is void - This is a fundamental principle of contract law. Consideration is essential for a contract to be valid, and an agreement without consideration is considered to be a gift, which is not legally enforceable. Consideration should have some value in the eyes of law - Consideration must have some value, although it need not be adequate. For example, a promise to pay Rs.1,000 in exchange for a car worth Rs.50,000 would still be valid consideration, even though the consideration is not adequate. Consideration must be adequate - This statement is incorrect. Consideration need not be adequate, but it must have some value in the eyes of law. Invitation cannot be proved in a court of law - This statement is incorrect. An invitation to make an offer (also known as an invitation to treat) is an essential element of a contract. It is not an offer, but it is a preliminary step towards making an offer. An invitation to treat can be proved in a court of law.  

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