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Exceptions to the general rule no consideration no contract

Following are the exceptional circumstances provided in Sec.25, under which the agreement is valid and enforceable even if it’s made without a consideration.

Sec 25(1) Natural love and affection

An agreement in writing which is registered and is based on natural love and affection between parties in close relation to each other is valid and enforceable even if there is no consideration. The following conditions must be satisfied for the application of this exception:
  • The agreement must be in writing and registered
  • The agreement must be based on natural love and affection
  • The agreement must be between the parties who are in near relation to each other

A father by a registered document promised to pay his daughter ₹ 100 per month as her pocket money. This agreement is valid.


Note: Mere nearness of relation by itself does not necessarily imply natural love and affection.

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