Amol promised to give a gold ring worth ₹ 1 lakh to her friend Chakori on her birthday. Whether the promise made by Amol is enforceable in law as per the provisions of the Indian Contract Act, 1872?
What would be your answer if the relation between Amol and Chakori is of Husband & Wife?
According to Section 25 of the Indian Contract Act, 1872, an agreement made without consideration is void, subject to certain exceptions.
One important exception is:
An agreement made out of natural love and affection between parties standing in a near relation to each other is valid, provided it is in writing and registered.
Position when Amol and Chakori are Friends: Since the Amol and Chakori are merely friends (and not near relatives) and do not come within the purview of Section25(1). The promise to give a gold ring is mere promise and not supported by consideration. Hence the promise made by Amol is not legally enforceable.
Position when Amol and Chakori are Husband & Wife: In this position the parties are in near relation and Amol promised out of natural love and affection to gift her wife a gold ring. This can be legally enforceable provided the promise is in writing and registered under the law.
In other words, this can be legally enforceable provided the promise is in writing and registered under the law as Amol and Chakori are in near relation and Amol promised out of natural love and affection to gift her wife which comes within the purview of Section 25(1) of the Indian Contract Act, 1872.
Exam Strategy Tip
When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
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