Insufficiency of Consideration is Immaterial but an Agreement without Consideration is void. Explain.
A contract without consideration is void ab initio. There must, therefore, be consideration. But, it need not necessarily be equal in value to the promise of other. An agreement supported by inadequate consideration remains enforceable and what is an adequate consideration for one’s promise is to be decided by the party concerned. But, if an agreement is not supported by consideration at all, therefore one of the parties to it is not getting anything in return of its promise, the agreement is void. Section 25 of the Indian Contract Act points out in this regard the enforce ability of such an agreement by stating such agreements to be void (except under special circumstances).
The reason behind the rule is ethics. If a person promises to do or abstains from doing something, he should be compensated for his act or abstinence failing which he will not have an inducement to perform his part of promise. Therefore, inadequacy of consideration is immaterial but an agreement without consideration is void. Although consideration need. not be adequate, it must be real, competent and of some value in the eyes of the laws.