Consideration Need Not Be Adequate but it must have Some Value in the Eyes of Law. Explain

Adequacy of Consideration need not be adequate, but must have some value, however slight. It is up to the parties to fix their own prices. For example, where X voluntarily agreed to sell his motor car worth Rs. 30,000, for Rs. 10,000 to Y, it becomes a valid contract despite the inadequacy of the consideration. Explanation 2 to Section 25 of the Contract Act also clearly provides that 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  consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given. In the above example, if X wants to avoid the contract on the ground that his consent was not free, the court, while deciding the case, will take into account the inadequacy of consideration.

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