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Under Explanation 2 to Section 25, the fact that consideration is inadequate:
AMakes the agreement void automatically
BDoes not by itself make the agreement void but may be evidence that consent was not free
CConverts the contract into a voidable one at once
DHas no legal relevance whatsoever
Answer & Solution
Correct answer: B. Does not by itself make the agreement void but may be evidence that consent was not free
Consideration need not be adequate; an agreement is not void merely because consideration is inadequate, but inadequacy may be evidence that the promisor's consent was not freely given.
Related questions
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