CAF-4 · Chapter 5 · Question 6 of 15
Azam agrees to sell a horse worth Rs. 100,000 for only Rs. 1,000. Azam's consent was free. Is this a valid contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Yes, because adequacy of consideration is not required, provided consent is free.
Explanation
The law does not require consideration to be adequate or equal in value to the promise. As long as there is some value (no matter how small) and consent is free, the contract is valid.
More Legality of object and consideration MCQs
- Q8A promise to pay, wholly or in part, a debt which is 'barred by the law of limitation' is valid if:
- Q9Azam promises to pay Rs. 1,000 to Babar if Babar beats up Azam's enemy. Babar beats the enemy. Can Babar legally recover the money?
- Q10Who can provide consideration in a contract?
- Q11An agreement to refer any future dispute to arbitration (instead of a court) is:
- Q12Which of the following agreements is generally considered 'opposed to public policy'?