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What happens if there is no consideration in a contract?

Consideration is the main element of a contract. Without consideration by both parties, a contract cannot be enforceable. For instance, if a person used the money to purchase an apple, the apple is the merchants consideration, and the money is the persons consideration.

What is the law of contract 1?

Some legal scholars have described contract law as a miniature legal system in itself as the terms and conditions in the contract become binding upon the parties like a self-imposed law. Thus, contracts are voluntary and depend upon the exercise of the will of the parties but subject to the law of the land.

Is no consideration a no contract?

Section 25 of the Indian Contract Act, 1872, provides for the rule that agreements without consideration are void unless they are in writing and registered, are a promise to compensate for something done, or are a promise to pay a debt barred by limitation law.

What does there is no consideration mean?

Lack of consideration means that one of the parties to a contract is not obligated in any way, while the other party holds all obligation to act. Generally, courts will not interfere with parties to a contract.

What happens if there is no consideration?

When there is a lack of consideration, the contract never was valid or enforceable. In contrast, failure of consideration occurs where a valid contract with a valid consideration becomes unenforceable due to the consideration no longer being valuable.

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