NO CONSIDERATION NO CONTRACT-EXCEPTIONS

Every agreement to be enforceable at law must be su orte! by val"! cons"!erat"on# An agreement ma!e w"t$out cons"!erat"on "s vo"! an! "s unenforceable e%ce t "n certa"n cases# Sect"on &' s ec"f"es t$e cases w$ere an agreement t$oug$ ma!e w"t$out cons"!erat"on w"ll be val"!# T$ese are as follow( )# Natural love an! affect"on *Sec# &'+),An agreement t$oug$ ma!e w"t$out cons"!erat"on w"ll be val"! "f "t "s "n wr"t"ng an! reg"stere! an! "s ma!e on account of natural love an! affect"on between art"es stan!"ng "n a near relat"on to eac$ ot$er# An agreement w"t$out cons"!erat"on w"ll be val"! rov"!e!+a, "t "s e% resse! "n wr"t"ng. +b, "t "s reg"stere! un!er t$e law for t$e t"me be"ng "n force. +c, "t "s ma!e on account of natural love an! affect"on. +!, "t "s between art"es stan!"ng "n a near relat"on to eac$ ot$er# All t$ese essent"als must be resent to enforce an agreement ma!e w"t$out cons"!erat"on# &# Com ensat"on for serv"ces ren!ere! *Sec# &'+&,An agreement ma!e w"t$out cons"!erat"on w"ll be val"! "f "t "s a rom"se to com ensate w$olly or "n a art a erson w$o $as alrea!y voluntar"ly !one somet$"ng for t$e rom"sor or somet$"ng w$"c$ t$e rom"sor was legally com ellable to !o#To a ly t$"s rule/ t$e follow"ng essent"als must e%"st( +a, T$e act must $ave been !one voluntar"ly.

+b, for t$e rom"sor or "t must be somet$"ng w$"c$ was t$e legal obl"gat"on of t$e rom"ser. +c, t$e rom"sor must be "n e%"stence at t$e t"me w$en t$e act was !one. +!, t$e rom"sor must agree now to com ensate t$e rom"see# 0# T"me-barre! !ebt *Sec# &'+0,A rom"se to ay a t"me-barre! !ebt "s also enforceable# 1ut t$e rom"se must be "n wr"t"ng an! be s"gne! by t$e rom"sor or $"s agent aut$or"2e! "n t$at be$alf# T$e rom"se may be to ay t$e w$ole or art of t$e !ebt# An oral rom"se to ay a t"me-barre! !ebt "s unenforceable 3# Com lete! g"fts *E% # ) to Sec# &'E% lanat"on ) to sect"on &' rov"!es t$at t$e rule 4No cons"!erat"on/ No contract4 s$all not affect val"!"ty of any g"fts actually ma!e between t$e !onor an! t$e !onee# T$us "f a erson g"ves certa"n ro ert"es to anot$er accor!"ng to t$e rov"s"on of t$e Transfer of Pro erty Act/ $e cannot subse5uently !eman! t$e ro erty bac6 on t$e groun! t$at t$ere was no cons"!erat"on# '# Agency +Sec# )7', T$ere "s one more e%ce t"on to t$e rule# IT "s g"ven "n sect"on )7' w$"c$ says t$at no cons"!erat"on "s nee!e! to create an agency# 8# 9uarantee +Sec )&:,

A contract of guarantee "s ma!e w"t$out cons"!erat"on# :# Rem"ss"on +Sec 80, No cons"!erat"on "s re5u"re! for an agreement to rece"ve less t$en w$at "s !u# T$"s "s calle! rem"ss"on "n t$e law#