Chapter II - Of Contracts, Voidable Contracts and Void Agreements
Section 25
Section 25: Agreements without consideration
Section 25 states the general rule that an agreement without consideration is void and lists three exceptions with distinct conditions. It also preserves completed gifts and distinguishes inadequate consideration from no consideration.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
An agreement made without consideration is void, unless—
(1) it 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 ; or unless
(2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless;
(3) it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement 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.
Illustrations
(a) A promises, for no consideration, to give to B Rs. 1,000. This is a void agreement.
(b) A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing and registers it. This is a contract.
(c) A finds B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract.
(d) A supports B’s infant son. B promises to pay A’s expenses in so doing. This is a contract.
(e) A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on account of the debt. This is a contract.
(f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A’s consent to the agreement was freely given. The agreement is a contract notwithstanding the inadequacy of the consideration.
(g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that his consent to the agreement was freely given. The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A’s consent was freely given.
Rule and business relevance
The exceptions concern a written and registered agreement based on natural love and affection between near relations; a promise to compensate for the described earlier voluntary or legally compellable act; and a written, signed promise to pay a debt barred only by limitation. Each exception must meet its own wording.
Limits and related provisions
A family relationship alone does not satisfy the first exception, and every past favour is not automatically enforceable. For a freely consented agreement, low consideration alone does not make it void, although inadequacy can inform the free-consent inquiry. A completed gift is different from an unsupported future promise to give.
Hypothetical business example
Hypothetical: a debtor signs a written promise to repay part of a debt that the creditor could have enforced but for limitation. The parties assess the specific subsection (3) conditions rather than treating any casual acknowledgement as necessarily the same promise.
Practical decision flow
Determine whether consideration is truly absent or merely alleged to be inadequate.
If absent, match the promise to a specific exception and verify its writing, registration, signature or past-act conditions.
Distinguish completed gifts from future promises and assess free consent and other enforceability requirements.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Determine whether consideration is truly absent or merely alleged to be inadequate.
- If absent, match the promise to a specific exception and verify its writing, registration, signature or past-act conditions.
- Distinguish completed gifts from future promises and assess free consent and other enforceability requirements.
Avoid
- A family relationship alone does not satisfy the first exception, and every past favour is not automatically enforceable. For a freely consented agreement, low consideration alone does not make it void, although inadequacy can inform the free-consent inquiry. A completed gift is different from an unsupported future promise to give.
Glossary
- Inadequate consideration
- Consideration of insufficient economic value, distinct from its complete absence.
- Time-barred debt promise
- The written and signed promise to pay the qualifying debt described in clause (3).
Frequently asked questions
Is a promise enforceable simply because the parties are relatives?
No. Clause (1) also requires natural love and affection, writing and registration within its terms.
Does a very low price necessarily make an agreement void?
Explanation 2 says inadequacy alone does not do so where consent is freely given, but it can be relevant to consent.
Does the section invalidate a gift already made?
Explanation 1 preserves the validity, as between donor and donee, of a gift actually made.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026