BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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.

Detailed explanation-2: -Inadequacy of consideration inadequate consideration is not void but it renders the contract unenforceable because of the improper bargaining or by itself.

Detailed explanation-3: -The Indian law states that adequacy of consideration is not necessary. The parties are free to bargain. A poor negotiation by one party does not make the contract void. However, the decision must be made with the free consent of both parties.

Detailed explanation-4: -The adequacy of consideration is a matter for the parties. All that the law concerns itself with is whether there is good and legal consideration. Adequacy of consideration may be material when a court is considering whether a transfer has been made voluntarily and with a full understanding of its effect.