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Compensation for involuntary services, Explanation: Section 25 of Indian Contract Act: As per S. 25 of Indian Contract Act, an agreement without any consideration is declared to be void, but there are some exceptions in this rule, in which an agreement is enforceable even though they are made without consideration. There are following exception of this rule: (1) Love and Affection. S.25(1): Where an agreement is expressed in writing and registered under the law for the time being in force for the registration of documents and is made on account of natural love and affection between parties standing in a near relation to each other. It is enforceable even if there is no consideration; Example: A for natural love and affection promises to give his son B Rs. 2000/-. A puts his promise to B into writing and register it. This is a contract. (2) Compensation for voluntary services. S.25(2): A promise to compensate wholly or in part, a person who has already voluntarily done something for the promisor, is enforceable, even though without consideration, Example: A says to B, at the risk of your life you saved me from a serious accident. I promise to pay you Rs. 10,000/-. There is a contract between A and B. (3) Promise to pay a time barred debt. S.25(3): A promise by a debtor to pay a time barred is enforceable provided. It is made in writing and is signed by the debtor or by his agent generally or specially authorized in that behalf. The promise may be to pay the whole or any part of the debt of which the creditor might have enforced payment but for the law for the limitation of suits, Example: A owes C Rs. 1500/- but the debt is barred by the limitation Act. A signs a written promise to pay C Rs. 750/- on account of the debt. This is a contract. Explanation 1. Nothing, in this section shall affect the validity, as between the donor and donee, of any gift actually made. Explanation 2. An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given.
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