CAF-4 · Chapter 5 · Question 8 of 15
A promise to pay, wholly or in part, a debt which is 'barred by the law of limitation' is valid if:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It is made in writing and signed by the debtor.
Explanation
According to Section 25(3), a promise to pay a time-barred debt is enforceable without fresh consideration if it is in writing and signed by the person to be charged therewith.
More Legality of object and consideration MCQs
- 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'?
- Q13Consideration must be ____________ at the desire of the ____________.
- Q14If an agreement consists of two parts, one legal and one illegal, and the two parts can be separated, what happens?